German flour mills fined for anti-competitive behavior
World-Grain.com, Feb. 25, 2013
by World Grain Staff
BONN, GERMANY — The Bundeskartellamt said on Feb.
19 it has concluded its cartel proceedings against
companies in the milling industry and imposed fines of
€41 million euros on 22 companies, the association of
German mills (Verband Deutscher Mühlen e.V.) and
their representatives on account of their involvement
in illegal agreements in the sale of flour.
A first fine of €24 million euros had already been
imposed in the same proceeding in October 2011.
In February 2008, the Bundeskartellamt searched
several milling companies in Germany after receiving
information from the market about agreements on
prices and quantities. Subsequently, several companies
filed applications for leniency and offered their
cooperation in clarifying the facts of the case.
“Since 2001 representatives of the milling companies
involved had agreed on prices, customer allocation and
supply volumes in regular rounds of talks. The
agreements applied to all forms of flour distribution,
i.e. to industrial customers (such as e.g. bakery
product manufacturers and bakery chains), artisan
bakers and the direct sale of flour in small packages
(max. 1 kg packets) to food retailers,” said Andreas
Mundt, president of the Bundeskartellamt. “With the
proceedings initiated in 2008, we have uncovered and
put an end to this system of price, customer allocation
and market sharing agreements in the milling industry
which has been practiced over many years."
In addition, the companies coordinated capacity
planning by shutting down mills or preventing mills
which had already been shut down from being
returned to operation.
In addition to VK Mühlen AG, which was already fined
in October 2011, the following companies were
involved in the agreements: Werhahn Mühlen GmbH &
Co. KG, Georg Plange GmbH & Co. KG, Mühle Rüningen
GmbH & Co. KG and Pfälzische Mühlenwerke GmbH,
Grain Millers GmbH & Co. KG (with its subsidiaries
Bremer Rolandmühle Erling GmbH & Co. KG, Mills
United Hovestadt & Münstermann GmbH and Heyl
GmbH & Co. KG), Saalemühle Alsleben GmbH,
Flechtorfer Mühle Walter Thönebe GmbH, Gebr.
Engelke Große Mühle Hasede-Hildesheim GmbH & Co.
KG, Magdeburger Mühlenwerke GmbH, Oderland
Mühlenwerke Müllrose GmbH & Co. KG, Hedwigsburger
Okermühle GmbH, Thüringer Mühlenwerke GmbH,
Albert Mühlschlegel GmbH & Co. KG, Friedrich Wilhelm
Borgstedt Milser Mühle GmbH, Südhannoversche
Mühlenwerke Engelke GmbH, Frießinger Mühle GmbH,
Bliesmühle GmbH, Karl Bindewald Kupfermühle GmbH,
Cramer Mühle KG, Heinrich Thylmann GmbH & Co. KG
Kilianstädtermühle, Rheintal Mühlen GmbH and Heiss
Mühle GmbH.
A representative of the association of German mills
also participated in the cartel discussions and assisted
the representatives from the various mills in
organizing meetings of the cartel and coordinating the
agreements.
The fines imposed on the individual companies are
calculated according to the seriousness and duration
of the involvement in the cartel. In addition, the
economic viability of the companies involved was given
special consideration in this particular case, also in
view of the fact that the French and Dutch competition
authorities have already imposed heavy fines on
German mills for their involvement in other
agreements. The proceedings were conducted in close
cooperation with the competition authorities of the
two neighboring countries.
In setting the fines, the Bundeskartellamt also took
into account that in addition to VK Mühlen AG, the
milling companies of the Werhahn group and Grain
Millers group also cooperated extensively with the
Bundeskartellamt in clarifying the accusations.
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World-Grain.com, Feb. 25, 2013
by World Grain Staff
BONN, GERMANY — The Bundeskartellamt said on Feb.
19 it has concluded its cartel proceedings against
companies in the milling industry and imposed fines of
€41 million euros on 22 companies, the association of
German mills (Verband Deutscher Mühlen e.V.) and
their representatives on account of their involvement
in illegal agreements in the sale of flour.
A first fine of €24 million euros had already been
imposed in the same proceeding in October 2011.
In February 2008, the Bundeskartellamt searched
several milling companies in Germany after receiving
information from the market about agreements on
prices and quantities. Subsequently, several companies
filed applications for leniency and offered their
cooperation in clarifying the facts of the case.
“Since 2001 representatives of the milling companies
involved had agreed on prices, customer allocation and
supply volumes in regular rounds of talks. The
agreements applied to all forms of flour distribution,
i.e. to industrial customers (such as e.g. bakery
product manufacturers and bakery chains), artisan
bakers and the direct sale of flour in small packages
(max. 1 kg packets) to food retailers,” said Andreas
Mundt, president of the Bundeskartellamt. “With the
proceedings initiated in 2008, we have uncovered and
put an end to this system of price, customer allocation
and market sharing agreements in the milling industry
which has been practiced over many years."
In addition, the companies coordinated capacity
planning by shutting down mills or preventing mills
which had already been shut down from being
returned to operation.
In addition to VK Mühlen AG, which was already fined
in October 2011, the following companies were
involved in the agreements: Werhahn Mühlen GmbH &
Co. KG, Georg Plange GmbH & Co. KG, Mühle Rüningen
GmbH & Co. KG and Pfälzische Mühlenwerke GmbH,
Grain Millers GmbH & Co. KG (with its subsidiaries
Bremer Rolandmühle Erling GmbH & Co. KG, Mills
United Hovestadt & Münstermann GmbH and Heyl
GmbH & Co. KG), Saalemühle Alsleben GmbH,
Flechtorfer Mühle Walter Thönebe GmbH, Gebr.
Engelke Große Mühle Hasede-Hildesheim GmbH & Co.
KG, Magdeburger Mühlenwerke GmbH, Oderland
Mühlenwerke Müllrose GmbH & Co. KG, Hedwigsburger
Okermühle GmbH, Thüringer Mühlenwerke GmbH,
Albert Mühlschlegel GmbH & Co. KG, Friedrich Wilhelm
Borgstedt Milser Mühle GmbH, Südhannoversche
Mühlenwerke Engelke GmbH, Frießinger Mühle GmbH,
Bliesmühle GmbH, Karl Bindewald Kupfermühle GmbH,
Cramer Mühle KG, Heinrich Thylmann GmbH & Co. KG
Kilianstädtermühle, Rheintal Mühlen GmbH and Heiss
Mühle GmbH.
A representative of the association of German mills
also participated in the cartel discussions and assisted
the representatives from the various mills in
organizing meetings of the cartel and coordinating the
agreements.
The fines imposed on the individual companies are
calculated according to the seriousness and duration
of the involvement in the cartel. In addition, the
economic viability of the companies involved was given
special consideration in this particular case, also in
view of the fact that the French and Dutch competition
authorities have already imposed heavy fines on
German mills for their involvement in other
agreements. The proceedings were conducted in close
cooperation with the competition authorities of the
two neighboring countries.
In setting the fines, the Bundeskartellamt also took
into account that in addition to VK Mühlen AG, the
milling companies of the Werhahn group and Grain
Millers group also cooperated extensively with the
Bundeskartellamt in clarifying the accusations.
http://www.world-
grain.com/News/News%20Home/World%20Grain%20N
ews/2013/2/German%20flour%20mills%20fined%20for
%20anti-competitive%20behavior.aspx