THE EU Commission has made clear its intention to fine the publicly quoted sugar company, Greencore, for alleged anti competitive practices in the Irish market.
The level of fines can be up to 10 per cent of the company's previous year's turnover, bringing a maximum possible fine for Greencore to more than £43 million. Most fines are considerably less and the highest such penalty set by the Commission to date has been 9 per cent.
In a revised statement of its objections in relation to the sugar trade in Ireland between 1982 and 1990, the Commission yesterday made a number of new allegations and repeated earlier claims of anti competitive practices at Greencore subsidiaries, Irish Sugar and Sugar Distributors Limited.
A spokeswoman for Greencore yesterday refused to comment on the new allegations against the company and no further details were available from the European Commission,
The statement issued by the Commission's Directorate General for Competition to Greencore has firmly repeated its intention to impose a fine on the offending companies for infringing Article 85 of the European Treaty, which prohibits anti competitive agreements or cartels.
A spokeswoman for Greencore said the company would be responding to the Commission through its legal advisers. The company has up to two months to respond to the latest allegations.
The Commission will then refer the case to the Community member states who will finally decide the level of the fine.
Greencore is one of several sugar companies being investigated by the Commission for alleged anti competitive practices. The investigation involving Greencore's subsidiaries began in 1990 and relates to collusion in dividing up markets and setting prices over that eight year period when the sugar company was in State ownership. Greencore became a publicly quoted company in 1991.
The EU Commission Gas dropped similar allegations against the company in Britain and in Northern Ireland.
The Commission's inquiry into the sugar industry was prompted by an admission by the British company, Tate and Lyle that it had discovered unusual marketing arrangements involving price fixing between itself and Irish Sugar.
EU Commission officials have made a series of unannounced visits to Irish Sugar and Sugar Distributors since 1990 to examine documents and files in the course of the investigation.
In recent years, the Commission has handed down substantial fines on other Irish companies for anti competitive practices in aspects of their business. Buildings materials group, CRH is currently appealing against a £2.8 million fine for its role in a European price fixing cartel.
