US-based Chiquita Brands International has escaped a fine over fixing banana prices in Southern Europe because it blew the whistle on the cartel.
Today (12 October) the European Commission (EC) found that the Chiquita and Pacific Fruit groups operated a price fixing cartel in Greece, Italy and Portugal between July 2004 and April 2005.
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Because of this cartel, European consumers did not enjoy the benefits of undistorted competition for nearly a year and were “directly harmed”, the EC added.
Pacific Fruit, which sells bananas under the Bonita brand, was hit with a EUR8.9m (US$12.2m) fine.
“Companies need to be aware that the commission takes its anti-cartel enforcement duties very seriously,” said Joaquín Almunia, vice-president in charge of competition policy.
“There are only two ways to avoid a fine: refrain from joining a cartel or, if you have fallen for it, repent rapidly and inform the commission about it.”
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By GlobalDataAt the time of the infringement, annual banana sales in Italy, Greece and Portugal together amounted to an estimated EUR525m, according to EC figures.
Neither Chiquita or Pacific Fruit could immediately be reached for comment.
This is the second time European authorities have found cartel activities in the banana sector. In 2008 fruit companies were alleged to be fixing prices in Germany and seven other countries.
