(Published in the Official Journal. Only the published text is
authentic:
L 258 , 22/09/97 )
Irish Sugar plc infringed Article 86 of the EC
Treaty by having recourse - as part of a sustained and comprehensive
policy of protecting its position on the sugar market in Ireland - to
methods different from those which condition normal competition in
products or services based on traders' performance, the effect thereof
being that the maintenance of the degree of competition still existing
in the market or the growth of that competition has been hindered. To
this effect, Irish Sugar plc (and/or Sugar Distributors
Limited in the period before February 1990) engaged in the following
abusive conduct on the granulated sugar market for retail and
industrial sale in Ireland:
1. In the period 1986-1988, granting a special
rebate to certain retailers established in the border area with
Northern Ireland ("border rebate") and granting selectively
low prices to customers of an importer of French sugar;
2. Agreeing in 1988 with one wholesaler and one
retailer to swap competing retail sugar products, i.e. Eurolux 1 kilo
packet sugar of Compagnie Française de Sucrerie, for its own product;
3. In 1988, practising with the potential customer
of a competitor a fidelity rebate, that is, a rebate that was
conditional on the customer's purchasing all or a large proportion of
its retail sugar requirements from Irish Sugar plc;
4. In the period since (at least) 1985, practising a
system of "sugar export rebates", that is rebates granted on
sugar exported in processed form to other Member States, which
discriminate against customers of industrial sugar supplying the
domestic Irish market;
5. In the period since 1993, practising price
discrimination against competing sugar packers which sourced or source
their industrial sugar from Irish Sugar plc;
6. In the period since 1993, practising a policy
which adversely affects the competitive position of other Irish sugar
packers in the retail sugar market, in particular by;
(i) granting, at certain periods in 1994, rebates
to wholesale groups in Ireland which were dependent upon increases in
their purchases of retail sugar from Irish Sugar plc, and had the
effect of tying them to Irish Sugar plc to the detriment of competing
sugar packers;
(ii) granting, in December 1994 and February 1995,
selective rebates to certain customers of competing sugar packers
which were dependent on those customers increasing their purchases of
retail sugar from Irish Sugar plc over a period of 12 months and were
thus intended to restrict competition from the competing sugar
packers.
For the infringements referred to in Article 1, a
fine of ECU 8 800 000 is hereby imposed on Irish Sugar
plc.
The fine shall be paid, in ecus, within three months
of the date of notification of this Decision, into bank account
No 310-0933000-43 of the Commission of the European Communities,
Banque Bruxelles Lambert, Agence Européenne, Rond Point
Schuman 5, B-1040 Brussels. After the expiry of that period,
interest shall be automatically payable at the rate charged by the
European Monetary Institute for transactions in ecu on the first
working day of the month in which this Decision is adopted, plus 3.5
percentage points, namely 7.5%.
Irish Sugar plc shall immediately bring to an
end the infringements referred to in points 4, 5 and 6 of Article 1 in
so far as it has not already done so.
Irish Sugar plc shall refrain from repeating any act
or conduct described in points 4, 5 and 6 of Article 1, and from
adopting any measure having equivalent effect.
In particular, Irish Sugar plc shall refrain
from applying dissimilar conditions to equivalent transactions with
its industrial sugar customers, such as sugar export rebates and other
rebates that, because they bear no relation to the quantity of sugar
supplied and the costs of the transaction, discriminate against
competing sugar packers. Irish Sugar plc shall inform its industrial
sugar customers accordingly, in writing, within three months of the
date of notification of this Decision.
Irish Sugar plc shall also refrain from a policy of
pricing of retail sugar that adversely affects the competitive
position of other sugar packers, including selective pricing to
customers of competing packers and the granting of target rebates to
retail sugar customers. Irish Sugar plc shall inform those of its
customers that are currently receiving rebates or that have been
offered rebates that are dependent on achieving particular
volumes or increases in volumes of purchases from Irish Sugar plc
that such rebates no longer apply, in writing, within three months of
the date of notification of this Decision.
Irish Sugar plc shall, for a period of three years
from the date of notification of this Decision, furnish to the
Commission within three months following the end of each calendar
year, a list of the prices offered in the preceding year, including
all rebates and discounts, to its industrial sugar and retail sugar
customers, together with details of the volumes of sugar purchased by
each customer in that year.
A periodic penalty payment of ECU 1 000 shall
be imposed on Irish Sugar plc in respect of each day of delay in
carrying out the requirements set out in Articles 3 and 4, following
the expiry of the three-month time limit specified for their
implementation.
This Decision is addressed to Irish Sugar plc, Athy
Road, Carlow, Ireland.
This Decision shall be enforceable pursuant to
Article 192 of the EC Treaty.
Done at Brussels, 14 May 1997 For the
Commission
Karel VAN MIERT
Member of the Commission
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