2004/337/EC: Commission Decision of 20 December 2001… Article 4

Article 4

This Decision is addressed to: Arjo Wiggins Appleton Limited St Clement House Alençon Link Basingstoke Hampshire RG21 7SB United Kingdom Bolloré SA Tour Bolloré 31-32, quai de Dion-Bouton 92811 Puteaux cedex France Carrs Paper Ltd Cranmore Boulevard Shirley, Solihull West Midlands B90 4LJ United Kingdom Distribuidora Vizcaína de Papeles S.L Poligono Industrial Neinver Barrio Astince n 12-14 48160 Derio, Vizcaya España Mitsubishi HiTech Paper Bielefeld GmbH Niedernholz 23 33699 Bielefeld Deutschland Papelera Guipuzoana de Zicuñaga SA Barrio Zicuñaga 20120 Hernani, Guipúzcoa España Papeteries Mougeot SA 34, Rue Maurice Mougeot 88600 Laval sur Vologne France Papierfabrik August Koehler AG Hauptstraße 2-4 77704 Oberkirch Deutschland Sappi Limited Sappi House 48 Ameshoff Street 2001 Braamfontein Johannesburg Republic of South Africa Torraspapel SA Gran Via de les Corts Catalanes 678 08010 Barcelona España Zanders Feinpapiere AG An der Gohrsmühle 51465 Bergisch Gladbach Deutschland This Decision shall be enforceable pursuant to Article 256 of the Treaty. Done at Brussels, 20 December 2001. For the Commission Mario Monti Member of the Commission (1) OJ 13, 21.2.1962, p. 204/62. (2) OJ L 148, 15.6.1999, p. 5. (3) OJ L 354, 30.12.1998, p. 18. (4) OJ C 96 of 21.4.2004. (5) According to Sappi the paper base is made from a special type of wood pulp and this pulp is supplied by a limited number of suppliers (File p. 219). (6) There are also special types, called "self-contained": - Carbonless paper whose top side contains a layer of microcapsules and another of active clay. It can be used as the receiving sheet (CF) without it being necessary for the top sheet to have been coated on the back with microcapsules (for copying from conventional offset paper). - A self-contained carbonless paper whose top side contains both the layer of microcapsules and the layer of activated clay; while the underside contains the layer of microcapsules. It can be used as the middle sheet without the need for a top sheet coated with microcapsules. (7) Listings (10 %), computer bespoke (37 %), unit sets (42 %). Euroforms January 1991. File pp. 3188-3189. (8) "European and worldwide markets for carbonless paper to 2000 and beyond. Phase I". A report prepared for AEMCP by Mikulski Hall Associates (MHA), December 1996, p. 35 (File p. 1115). (9) 4 %: telex rolls, office printers, till rolls, or automated teller machines. (10) MHA report, December 1996, p. 20 (File p. 1100) (11) Carrs' reply to the Statement of Objections, file pp. 20341-20342. (12) Carrs' reply to the Statement of Objections, file pp. 20341 and 20351. (13) Carrs' reply to the Statement of Objections, file pp. 20341-20342. (14) MHA report, December 1996, p. 42 (File p. 1122). (15) Bolloré, the parent company of Copigraph, was directly implicated in the cartel together with its subsidiary (see paragraphs (353) to (356)); to facilitate the description and analysis of the case, they are both hereinafter referred to as "Copigraph". (16) Hereinafter referred to as "Stora". (17) Several subsidiaries of Sappi Limited have been implicated in the cartel (see paragraphs (357) to (359)); to facilitate the description and analysis of the case, all are hereinafter referred to as "Sappi". (18) MHA report, December 1996, p. 44 (File p. 1124); data collected by the Commission from the producers suggests that the figure on the size of the market could be somewhat higher, see table 1.b). (19) Euroforms, January 1991. (File p. 3188). (20) MHA report, December 1996, p. 42-43 (File pp. 1122-1123). (21) The sales for years 1994 and 1995 are provided as an example. The relative importance of each undertaking's annual carbonless paper sales may have varied from year to year over the period of the infringement. The market share estimates are derived directly from the data submitted by the undertakings (except for Copigraph where the market share is based on the information that in 1995 it had a market share of 5 %) and are provided on a purely indicative basis. The market share estimates are based on the assumption that the companies in Table 1(b) together covered 90 % of the EEA market. (22) In 1993 the estimated number of reels printers was 1260 and sheets printers 44200. (File pp. 3134-3135. See also file p. 340.) (23) File p. 220. (24) File p. 339. (25) Carrs' reply to the Statement of Objections, file p. 20352. (26) File p. 4628. (27) Sappi's submission of 22.12.1996 (File p. 220). MHTP states in its reply to the Statement of Objections (file p. 20404) that it (or Stora Carbonless Paper before it) sells carbonless paper mainly to paper wholesalers (all sheets and over 95 % of reels) and that it does not carry out part or all of the distribution function itself. MHTP does not specify, however, whether it owns some of the merchant companies as Sappi claims. (28) Figures calculated on the basis of information provided in the MHA report, December 1996, p. 40 (File p. 1120). (29) MHA report, December 1996, p. 4 (File p. 1084). (30) MHA report, December 1996, p. 3, 18-20 (File p. 1083 and pp. 1098-1100). (31) PPI, February 1997, File p. 2787. (32) MHA report, December 1996, p. 3, 9, 20-21 (File p. 1083, 1089, 1100-1101) and MHA report May 1997, p. 60 (File p. 11670). (33) MHA report, December 1996, p. 3 (File p. 1083). (34) MHA report, December 1996, p. 19 (File p. 1099). (35) According to Sappi, average transport costs for deliveries in Europe are < 10 % of delivered price. File p. 215. (36) For year 1992 the Commission has detailed figures for 6 companies, for 1993 and 1994 for 8 companies and for years 1995-1997 for 9 companies. (37) File p. 7793 and pp. 19752-19755. (38) File pp. 414-415 and 13352. (39) Information between square brackets marked with an asterisk replace confidential information which has been deleted from the text. (40) File pp. 19-20, 26-28. (41) See Commission Decision 1999/641/EC of 25 November 1998 in Case IV/M.1225, OJ L 254, 29.9.1999, p. 9. (42) See Commission Decision of 24.2.1992 in Case No IV/M.166 - Torras/Sarrío. (43) Wiggins Teape, Feldmühle, Koehler, Zanders, Ahlström (ceased production in 1991), Binda (ceased production in 1993), DRG, Sarrío and Reed (ceased production in 1986). (File p. 165). (44) OJ C 207, 18.7.1996, p. 4. (45) File pp. 7828-7829. (46) Original in German: "nicht nur die allgemeine wirtschaftliche Situation der Branche erörtert, sondern auch über Preise gesprochen wurde" ... "[Z]wischen den Wettbewerbern [wurde] kein Einvernehmen über Preiserhöhungen erzielt". (File p. 9044). (47) File p. 13353. (48) File pp. 7647-7658. (49) Commission Notice on the internal rules of procedure for processing requests for access to the file in cases pursuant to Article 85 and 86 (currently 81 and 82) of the EC Treaty, Article 65 and 66 of the ECSC Treaty and Council Regulation (EEC) No 4064/89 (OJ C 23, 23.1.1997, p. 3). (50) Koehler's reply to the Statement of Objections, file pp. 20733-20735. (51) File pp. 20739-20740. (52) File p. 20439. (53) File p. 19592. (54) File p. 18468. (55) File p. 20603. (56) File p. 19717. (57) File p. 19563. (58) File p. 19733. (59) File p. 20403. (60) File p. 20358: Carrs indicates that during 1993-1994 it actively attended UK meeting. From the end of 1994, it generally no longer attended the meetings but was kept informed of the conclusions of these meetings by telephone, generally by AWA. (61) File pp. 20703 and 20721. (62) File p. 20506. (63) Sappi has provided to the Commission a statement made by one of its employees who has been in sales of carbonless paper since the 1970s, saying that "He had first suspected that there was collusion in carbonless paper in about the mid 1980[s] because of comments made by senior management ... He would have believed that the collusion involved Arjo Wiggins, Köhler and Stora Feldmühle, among others. He had been aware of bilateral exchanges of information from about the mid/late 1980s" (File p. 4656). Another statement from another Sappi employee suggests that there were collusive contacts and meetings between competitors during the period from 1991 to 1993 at an EC-wide level. This Sappi employee "believed that there was collusion through these contacts and that there were discussions between suppliers about prices at an EC-wide level" (File p. 4652-4653. This employee joined DRG in 1988 and between May 1991 and March 1993 worked for [a Sappi employee]* based at the Transcript mill.). (64) File p. 2011. (65) File p. 2245. (66) File pp. 8, 4476, 1839, 47-51. (67) File p. 50. (68) File p. 4520. (69) See chapter. (70) Original in French: "[an AWA employee]* a précisé qu'il ne s'agissait que d'un problème de prix et non de volume mais que sur ce point il se chargerait de régler ces problèmes dès l'instant où l'on participerait à la restauration de la rentabilité." (File p. 7648). (71) File pp. 9936, 11596-11598. (72) See e.g. file pp. 72 and 3973-3976. (Minutes of the meetings can be found on file pp. 73-197, 3978-4173 and 4732-4750.) The meetings were first called as the EPI AEMCP Product Group meetings and from the end of 1993 onward as the AEMCP General (Assembly) Meetings. Annexed to the minutes of the AEMCP meeting held on 1.12.1995 there is a list of chairmen and secretaries of the association starting from April 1981 (File p. 186). This list shows that a chairman and a secretary of the association were appointed every year from one of the member companies, both coming from the same company at a time. (73) Representatives of both Torraspapel SA and Sarriopapel y Celulosa SA participated in the AEMCP meetings. (74) File pp. 187-190. (75) Original in French: "il était considéré par AWA que sans implication des responsables locaux des marchés, il y avait peu de chances d'atteindre les résultats escomptés, expliquant par-là même la tenue des réunions marché par marché" ... "les responsables locaux informés par leurs dirigeants d'une volonté de hausse de prix étaient chargés de définir entre eux les modalités pratiques pour obtenir cette hausse". (File p. 11597). (76) The documentary evidence, and in particular the information on price increases, indicates that the UK and Irish markets were considered as one region. (77) Original in French: "Les Papeteries Mougeot recevait des uns ou des autres, le plus souvent d'AWA, des coups de téléphone annonçant les modalités de hausses de prix par marché. Ceci a été essentiellement pratiqué jusqu'à mi 1995". (File p. 11598). (78) File pp. 10005-10006. (79) File p. 2482. (80) See chapter 1.4.4.2. (81) File pp. 11493 and 11598. (82) File pp. 940, 942-943, 945, 948, 3378-3380. For year 1992 only concerning Belgium and Luxembourg. (83) File pp. 3414, 3641, 3643. For Portugal only concerning year 1996. (84) File pp. 3381-3383 and 946. Tables of this type were also found for the UK and Spanish markets in the years from 1995 to 1997 ("estimate") and for the Portuguese market in the year 1996 (File p. 3415, 3642, 3644; see also file p. 3265, which gives equally detailed market share information for main competitors in European level). (85) File pp. 3384-3386 and 947. (86) The firms are presented in the tables in two groups: AEMCP members (AWA, Feldmühle (Stora), Koehler, Zanders, Sappi, Sarrío (Torraspapel), Copigraph and Mougeot) and outsiders (Molineus, Hauffe, Carrs, Jujo, Nashua etc.). For the AEMCP members the tables provide complete information for each year, whereas for the outsiders only some information is given. (87) File pp. 7657-7658. (88) Information on sales volumes was exchanged at least at the following meetings: 30.9.1993 in Barcelona, 1.10.1993 in Paris, 9.2.1994 in Lisbon, spring 1994 in Nogentel and 6.12.1994 in Geneva. For details see chapter below. (89) File p. 7649. (90) File p. 7655. Original in French: "certaines des principaux intervenants sur ce marché". (91) File pp. 2485-2491. (92) Highlighting added. Original in French: "[un employé d'AWA]* a très explicitement indiqué qu'il ne tolérerait pas que cette hausse de prix ne soit pas suivie et qu'il 's'occuperait personnellement' de tous ceux qui ne 'joueraient pas le jeu'" (File p. 7648). (93) Original in French: "Il n'y avait pas à notre connaissance de contrats, documents ou situations juridiques permettant à AWA de revendiquer une quelconque autorité. En revanche, ces derniers avaient une position de leader moral et économique sur le marché. [un employé d'AWA]* était pour les anciens fabricants celui qui avait lancé avec succès l'autocopiant en Europe pour AWA, puis obtenu des résultats flatteurs aux Etats-Unis. La présence financière et industrielle de AWA lui permettait de déclarer que pour le cas où ces hausses ne seraient pas répercutées, AWA faisait son affaire de complètement écraser le marché en appliquant une politique de prix qui laisserait le plus grand nombre 'sur le carreau'. Il fit d'ailleurs une parfaite démonstration de sa capacité en écrasant BINDA en Italie". (File p. 11494) (94) Mougeot's statement of 14.4.1999 (File p. 7653). (95) Mougeot's statement of 29.6.1999 (File pp. 11493-11494). (96) Mougeot states that it was introduced to AEMCP as a candidate member on 25.11.1992, and that the first meeting it attended as a member was on 9.2.1993. Nevertheless, [a Mougeot employee]* attended AEMCP meetings as long ago as 26.5 and 10.9.1992. File pp. 3996 and 4001. (97) Original in French: "Sans doute à l'occasion de la réunion officielle de l'AEMCP du 14 septembre 1993 à Francfort ou à celle d'avant, en tout cas lors de l'entrée en fonction de [un employé d'AWA]* à la tête de la Direction Générale de la branche autocopiant d'AWA. [Il]* a clairement décidé de convoquer à des réunions 'non-officielles' les principaux producteurs de l'autocopiant marché par marché, et de modifier l'organisation des réunions officielles de l'AEMCP. Désormais, [il]* a décidé qu'un avocat assisterait à chaque réunion de l'AEMCP pour donner à celles-ci un caractère officiel et insusceptible de critique. En revanche il décida que tout ce qui concernerait les prix n'y serait plus abordé mais uniquement traité lors de réunions 'non-officielles'." (File p. 7647). (98) File pp. 74-82. Apparently [an AWA employee]* had become the head of AWA's carbonless paper sector just before this meeting took place. The minutes of the meeting expressly mention his return to Europe and say, "[an AWA employee]* ... takes the Chair in place of [...]* who has left ARJO WIGGINS". (99) The AEMCP meeting preceding the meeting of 14.9.1993 was held in Zurich on 7.7.1993. (100) File pp. 106-111. (101) File p. 5407. (102) File pp. 91 and 97. The companies were also represented at the previous AEMCP meeting held on 7.7.1993 in Zurich. (103) File p. 121. At the official meeting the following companies were represented: AWA, Copigraph, Koehler, Mougeot, Sappi, Stora, Torraspapel and Zanders. (104) File pp. 121-127. (105) The Commission also has a copy of the relevant page of the 1994 diary of [an AWA employee]*. This document shows that on 19.1 he was planning to be in Paris at the hotel Sofitel at 08.00, have lunch at 12.00, and attend a meeting (the official AEMCP meeting) at 13.00. He had also circled the hours 11 and 16 in his diary (File p. 927). (106) AWA reply to the Commission request for information (File p. 7828) and to the Statement of Objections, p. 19749. (107) A travel expense form for [a Koehler employee]* (File p. 5044), which shows that he left for Paris on 18 January at 16.00 and returned to Germany on 19 January at 21.00. (108) File p. 1147. (109) File pp. 2484, 10035-10036. (110) File pp. 144-149. (111) Documents found in the premises of Sappi and its agent in Portugal, Unipapel. File pp. 2358, 4539-4540, 10053-10054. (112) File pp. 150-155. At the official meeting the following companies were represented: AWA, Copigraph, Koehler, Mougeot, Sappi, Stora, Torraspapel and Zanders. (113) AWA reply to the Commission request for information (File p. 7828) and to the Statement of Objections, p. 19742. See file p. 1748 and 11597. (114) File pp. 11597 and 11599. (115) [a Koehler employee]* travel expense form shows that he left for Frankfurt on 21 September at 14.00 and that he returned on 22 September at 17.00. [a Stora employee]* travel expense form shows that he left for Frankfurt at 07.30 and returned at 18.15 on 22 September 1994. A page from [an AWA employee]* diary shows that had reserved the whole day of 22 September for "AEMCP/Frankfurt", and that he had made plans to leave from Frankfurt for Paris on flight LH 4306 at 17.20. (File pp. 930, 1748, 4787 and 5057). The above documents show that [a Koehler employee]*, [a Stora employee]* and [an AWA employee]* could have participated in a general cartel meeting before the official AEMCP meeting. (116) File pp. 2494, 691 and 918. (117) File p. 7. (118) File pp. 9938, 9940 and 9973. (119) File pp. 161-167, 549, 890-892, 905, 4116-4118, 4781, 4783, 4785, 4786, 5216, 5218, 5222-5226, 5230-5232, 5234. (120) File p. 5219-5220. Original in German: "Raumreservierung für 8-10 Pers. Airport Center/Raum Nr 19 2.2.95 ab 1400 ([sim ] 17/1800) auf den Namen Koehler". (121) The attendance list of the official meeting lists all these names and some others (File p. 164). (122) File pp. 264-267, 862, 931, 3675-3676, 3876, 3879, 4246-4247, 4250-4251, 4254, 5001-5002, 5011-5012, 5364-5365, 5382. The extract from [an AWA employee]* 1995 diary shows that he was planning to leave Frankfurt for Paris on flight LH 4306 at 17.20, which shows that he would still have been in Frankfurt some hours after the official meeting. (123) File pp. 11496-11497. (124) File pp. 11500-11501, 11601, 11674 ([a Mougeot employee]*'s parking receipt) and p. 11675 ([a Mougeot employee]*'s boarding pass). (125) File p. 5095. (126) From 11:00 until 13:00, 25 persons, with lunch. The document gives the time and the place of the meeting and says either "Ausschilderung AEMCP" ("signposted AEMCP") or "keine Ausschilderung" ("no signposting"). (127) From 14:00 until 18:00, 10 persons. The document gives the time and place of the meeting and says either "keine Ausschilderung" ("no signposting") or "Ausschilderung Koehler" ("signposted Koehler"). (128) File p. 178. (129) File p. 183. (130) File pp. 7828-7829; File p. 13353; File pp. 33-34, 223-224, 4647-4669. (131) File pp. 7828-7829. In AWA's sales organization the Benelux countries come within the responsibility of a regional manager whose territory also includes the United Kingdom, Ireland and Overseas (File p. 1931). A document found on AWA's premises indicates that there were meetings concerning the Benelux area (File p. 953). (132) File p. 7828. (133) File p. 7829. (134) The Commission has travel expenses forms showing that [a Koehler employee]* and [a Stora employee]* were both in Paris on 14.4.1993. File p. 5034 and pp. 4798-4799. (135) File pp. 34, 223-224 and 9940. (136) File p. 9940. (137) File pp. 7648-7649 and File p. 9973. (138) File p. 6. (139) Ibid. (140) File p. 7650. (141) File p. 7651. As to the date of the meeting, the price increase documents of AWA and Mougeot indicate that the meeting was held earlier than the date Mougeot recalls. Mougeot's internal note dated 16.5.1994 speaks of a need to announce the same week that prices would increase by 6 % on 4.7.1994. AWA for its part had announced the price increase on 20.5. (142) Original in French: "suivi du marché français, augmentation des prix vraisemblablement au 1er juillet 1994"; [un employé d'AWA]* "a incité à suivre l'augmentation de prix de 6 % qu'AWA entendait mettre en oeuvre le 1er juillet 1994". (143) File pp. 7652-7653 and pp. 7657-7658. (144) File p. 1751. (145) Not in June, as written in Mougeot's representatives hand-written note. (146) File pp. 7652-7653; 11493-11495. (147) These figures represent probably price indexes where the price in October 1994 is marked by 100 and the increases thereafter are set in relation to that. This would be consistent with the fact that the cartel usually set price increases in percentage form (except in the Spanish market). (148) File pp. 7652-7653. (149) File pp. 7653-7654. (150) File p. 7654. (151) Original in French: "Quoique n'ayant pas retrouvé de trace et n'ayant pas garde de souvenirs précis, il est vraisemblable qu'il y ait eu une réunion au mois de juillet 1994 afin de préparer une hausse de prix pour le mois d'octobre de la même année. Il se peut également qu'une autre réunion se soit tenue au mois d'octobre 1994." (File p. 7652). (152) AWA's reply to the Statement of Objections, file p. 19748. (153) File p. 7829. (154) Meeting in spring 1993: travel expenses forms show that [a Koehler employee]* and [a Stora employee]* were both in Paris on 14.4.1993 (File p. 5034 and pp. 4798-4799). Meeting of 1.10.1993: The presence of [a Koehler employee]* in Paris on 1.10.1993 is confirmed by a travel expenses form, airline ticket and hotel bill (File pp. 5025-5028 and 5043). Remarks against the date 1.10 in the 1993 diary of [two Mougeot employees]* show that both of these persons were in Paris on 1.10.1993. In the diary of [a Mougeot employee]* from Mougeot there are the following words: "Salle Saturne [Saturn Room] (Paris Roissy) 14h30. Marché France [French market]. Tel: 39.63.4000". Against the same date in [a Mougeot employee]*'s (Mougeot) diary there are the words "France AEMCP" (File p. 1151 and 1755). (155) Eupaco grafische Papiere GmbH & Co KG (Eupaco KG) was a sister company of Copigraph SA and also produced carbonless paper. Their parent company, Bolloré Technologies SA, acquired Eupaco in 1992, and in 1997 Eupaco was merged with Copigraph's German subsidiary, Copigraph GmbH. (156) AWA reply to the Commission request for information (File p. 7828) and to the Statement of Objections, file p. 19748. (157) File p. 13353. (158) File p. 6. (159) File p. 9939. (160) From approximately 1991 until early 1994, Sappi sold in Spain through an agent, Norandum Fibras. In 1994 Sappi established sales offices in Madrid and Barcelona which were operated by Sappi Europe (España) SL, and terminated the agency agreement. File pp. 4635 and 4637-4638. (161) File p. 7828. (162) File pp. 4703-4704 (memo sent to [a Sappi employee]* by Sappi's agent in Spain, [a Norandum employee]*, on 9 March 1992). (163) File pp. 4588 (Fax from [a Sappi employee]* to his superior [a Sappi employee]* dated 17 February 1992). See also file p. 9944. (164) File pp. 4589 (Report from [a Sappi employee]* to [a Sappi employee]* dated 27 February 1992). (165) File p. 9938. (166) File pp. 4501-4503. (167) File p. 4520 and 4484. Original in Portuguese: "discutir aumentos de preços e quotas de mercado. Os acordos incidem essencialmente sobre 'bobinas' mas admite, sem confirmar, a existência do mesmo tipo de acordos para 'folhas'."; "trocam-se informações sobre as quantidades vendidas e os preços praticados por cada empresa". (168) File p. 4657-4662. This employee had begun to work for Sappi in Spain in September 1993. (169) File p. 4659. (170) File pp. 5 and 9972. (171) File p. 9938. (172) File pp. 8, 4474, 4476, 9938-9940 and 9977-9980. (173) File p. 4474 and 9987. Original in Spanish: "... todos los distribuidores excepto Copygraf". (174) AWA's price increase letter dated 3 March 1994 to a Spanish customer confirms the "today" prices in the meeting report and also that those prices were meant to remain in force until 31 May. File p. 8144. (175) Original in Spanish: "Nuestro líder (TP [Torraspapel]) ha anunciado una disminución en precio de 10 Ptas y todo hace prever que los aumentos de Noviembre no tomaran efecto, ya que hasta la fecha ningún distribuidor los ha anunciado." (File p. 4565). (176) File p. 1839, 7652 and 11495. (177) File p. 9939 and 4483-4484. (178) File pp. 35-36. (179) File p. 41. (180) File p. 47-51. (181) File p. 4483-4484. (182) AWA's reply to the Statement of Objections, file p. 19748-19749. AWA lists in its reply all these meetings except the possible meeting of around 23 September 1994. (183) AWA reply to the Commission request for information (File p. 7828). (184) Sappi's submissions of 4.12.1997 and 18.5.1999 (File p. 4657-4659, 15198-15200) and Mougeot's submissions of 14.4.1999 and 29.6.1999 (File p. 7652 and 11495). (185) The meeting in Barcelona on 30.9.1993: A travel expenses form, an airline ticket and a hotel bill for [a Koehler employee]* confirm that he was in Barcelona on 30.9.1993 (File pp. 5025-5028 and 5043). The meeting of 3.05.1994: Travel expenses forms and oral and written explanations received by the Commission prove that [a Koehler employee]* and [two Stora employees]* were in Barcelona on the date of the meeting (File pp. 4788-4790; 5009; 5637-5638; 5690-5693; 5052; 5014-5015; 5373). The meeting of 29 June 1994: The Commission has a travel expense form and oral explanations received during an investigation which confirm that both [a Koehler employee]* and [...]* from Koehler's agent [...]* were present in Barcelona on 29.6.1994 (File pp. 5053 and 5373-5374). (186) File pp. 4760-4764. In addition to the above dates [a Sappi employee]*'s name or initials are also marked against the following dates: 25.1.1994, 28.1.1994 and 28.6.1994. (187) File pp. 2010-2011 and 4602-4603. A draft of this fax, dated the day before, is on file pp. 4580-4581. (188) File pp. 4579, 4668-4669. See also Sappi's statement in file p. 9969. (189) Another document received from Sappi confirms that the agreed reels prices were generally respected by the cartel members, except Zicuñaga. File p. 4574-4575. (190) File p. 51. (191) File pp. 4600-4601. See also Sappi's comment on this document on file p. 9969. (192) Original in Portuguese: "Os clientes diziam que todos os fabricantes aumentaram os preços ao mesmo tempo ... Havia o 'feeling' de que existia uma lógica de mercado, a nível europeu, entre os produtores. Essa lógica poderia justificar o que estava a acontecer no mercado português." File p. 4525. (193) File p. 9944. (194) File pp. 10003-10004. (195) File p. 9940. (196) File p. 7828. (197) File pp. 33-34 and p. 223. This employee was at the relevant times (1990-1995) [high-ranking commercial executive in Sappi's carbonless paper operation]. (198) This is confirmed by Mougeot in respect of the November 1993 meeting, see paragraph (182) below. (199) File pp. 34, 223, 4654-4657. Sappi has provided a copy of some pages of [one of their high-ranking commercial executives in carbonless paper operation] 1993 diary. On Thursday 14 January there is the following: "T2 Heathrow 10 am Bus. Centre". File p. 4752. (200) In the document concerning the French market meeting in Paris on 1.10.1993 it is said: "Other markets; ... U.K. meeting - 6.11.93" (File p. 6) It is more likely that the meeting was held on 9.11.1993 rather than 6.11.1993, because the latter date was a Saturday. Both Sappi and Mougeot confirm this interpretation. File p. 9939 and File pp. 7649-7650. (201) AWA's reply to the Statement of Objections, file p. 19748. (202) Meeting of 14.1.1993: A travel expense form shows that [a Koehler employee]* was in London on 14.1.1993 (File p. 5033). Meeting of 9.11.1993: Copies of the diaries of [two Mougeot employees]* show that these persons were in London on 9.11.1993 (File pp. 1150 and 1756). (203) File pp. 33-34, 223 and 9940. File p. 7828. (204) File pp. 9973 and 10005. (205) File pp. 2504-2509. (206) The latter abbreviation clearly also refers to the Association of European Manufacturers of Carbonless Paper. (207) File p. 20348 (208) AWA reply to the Commission request for information (File p. 7828-7829) and to the Statement of Objections, file pp. 19748-19750. (209) File p. 2484. (210) Without the hand-written word TRANSCRIP, which appears in the version of that table found initially. File pp. 10035-10036. (211) This is confirmed by the information Sappi has provided to the Commission on its sales volumes by EEA Member States. In the tables for the years 1993 and 1994 Sappi does not provide a breakdown of the sales volumes for sheets and reels. (File p. 9957). (212) File p. 10029. (213) File p. 2483. (214) File p. 5. (215) File pp. 4474 and 9939. (216) See File p. 6. (217) File pp. 7648-7649. (218) File p. 7650: the two graphs found at Stora show immediately after the 6 % and 10 % price increases, which had been agreed at the meeting of 1 October 1993, further 6 % increases for both reels and sheets (File pp. 4944-4945). (219) Mougeot's submission of 14.4.1999 (File pp. 7649-7650). (220) As Mougeot was selling only reels, it might be that the increase referred to by Mougeot related to reels only. (221) File pp. 2504-2509. The latter abbreviation clearly also refers to the Association of European Manufacturers of Carbonless Paper. (222) Original in German: "Es ist vorgesehen, für die Hauptsorten im SD-Bereich eine Preiserhöhung von durchschnittlich 5 % in den verschiedenen Ländern vorzunehmen. In Italien, wo durch die Übernahme von Binda durch Wiggins Teape eine Sondersituation entstanden ist, soll eine Preiserhöhung zum 1.1. und 1.4. von jeweils 10 % angekündigt werden." (File p. 5308-5311). (223) The date of the increase is the same as agreed in the French market meeting on 1.10.1993, but the percentage is smaller. The increase agreed at that meeting was to have been 10 %. (224) On 1 December 1993 Sappi gave its distribution network instructions to advise customers of price increases for Belgium, Holland and the Nordic countries, effective on despatches from 1 February 1994, which were identical to the February price increases in Table 4. (File p. 2737) (225) The words "proposal for" and "to distributors" and the crossing out of words have been added by hand to the document. (226) File pp. 47-51. (227) File pp. 4520. (228) File pp. 8 and 9977-9978. (229) The Commission requested the carbonless paper producers to provide information on all price increases of general application (in percentage form) that each of them had announced since 1.1.1992. Only one company, AWA, gave information on its percentage price increases for the whole period requested. Sappi, Stora, Zanders and Copigraph provided information concerning all but the earlier years. Sappi gave information for the UK for the years 1994-1999 and for the rest of Europe from 1993 to 1995. Stora and Zanders gave information mainly for the time from 1995 onwards. Owing to the termination of its industrial activities and acquisition by AWA, Copigraph has been able to identify only some price increases since 1994. All others claimed that, as a rule, price increase negotiations were conducted on a very individual basis, or that the company no longer had the relevant documents in its possession for most of the period in question. Mougeot and Carrs, however, gave indicative information on price movements (in percentage form) in some markets, on the basis of increases announced to typical customers. Others (Koehler, Torraspapel, Zicuñaga) gave information only on monthly or annual average prices. (230) File pp. 10035-10036. (231) File p. 10037. (232) File p. 10040. (233) File p. 7866. (234) File p. 2483. (235) Both agreed at the meeting of 1.10.1993 in Paris, cf. also paragraph (203). (236) File pp. 4944-4945. These graphs show the movement of prices and sales volumes and percentage price increases for both reels and sheets in the years 1993-1995 for the French market. (237) File p. 7838. (238) File pp. 7681, 7728, 1813-1814. (239) The evidence gathered on the price increases of various producers is not homogeneous. It comprises instructions to sales subsidiaries or selling agents, standard form letters to customers, press releases and various types of internal company documentation. For the sake of simplicity, all measures taken by companies to increase prices, whether announcements or internal instructions, discussions or decisions, are called "price increase announcements" in the present Decision. (240) Originally 1.4, but delayed to 1.5. File p. 2482. (241) Originally 1.4, but delayed to 1.5. File p. 2482. (242) Also Copigraph announced to customers the increases agreed for the German market for February (reels and sheets) and May (reels only), and Carrs announced to customers the February and April price increases for sheets which had been agreed for the UK and Irish markets. At least some of these price increase announcements are to be explained by the firms' participation in the cartel activity (see in particular paragraphs (194) to (195)). (243) File p. 2358. File pp. 4539-4540. (244) File pp. 10053-10054. (245) Original in French: "a incité à suivre l'augmentation de prix de 6 % qu'AWA entendait mettre en oeuvre le 1er juillet 1994". (246) File p. 2358. File pp. 4539-4540. (247) File p. 4476. (248) File p. 691. According to Torraspapel the document gives specific market information and was written by [a Torraspapel employee]* in November 1994. (249) File pp. 2359-2371 and 10068-10076. (250) Sappi confirms the 6 % increase in its statement (File p. 9949), but some instructions to Sappi Paris show a 7 % increase for 1.7.1994. (251) File p. 4944. (252) Copigraph also announced the price increases agreed at this meeting for the French and German markets, though for reels only, and Carrs announced to its customers the increase for sheets agreed for the UK (and Irish) market. (253) For the United Kingdom and Ireland AWA, Sappi and Torraspapel announced the same 8 % reels increase. The list of price increases agreed at the general cartel meeting of 21 June gives a 12 % increase for reels instead of 8 %. It appears that after the general cartel meeting, the cartel members agreed to reduce the percentage. (254) File p. 10062. Sappi announced to customers on 30.6.1994 and AWA on 8.7.1994 the increases agreed for reels (10 %) and sheets (5 %) effective from 1.9.1994. File pp. 8150 and 10077. (255) File p. 7868. (256) The name Sarrío refers to Torraspapel, who organised the meetings in Barcelona. It is also the market leader in Spain. (257) File p. 4598. (258) File pp. 11597 and 11599. (259) File p. 2494. (260) File p. 691. During the investigation under Article 14(2) of Regulation No 17 carried out on Torraspapel's premises in November 1997, the Commission inspectors asked the company to give its interpretation of the above document, especially of the reference "prochaine augmentation" ("forthcoming increase") in the title (File p. 4247). Torraspapel explained that the document gave specific market information and had been written by [a Torraspapel employee]* in November 1994. Torraspapel further stated that the expression "en Europe" ("in Europe") in the title was an expression used by Torraspapel to refer to its European subsidiaries who were selling direct from the mill, i.e. the German, French, British and Italian subsidiary companies. File p. 4251. (261) File p. 918. (262) File p. 1839. (263) In the case of other meetings too Mougeot reports only on price increases for reels, even though there is evidence that price increases were also agreed for sheets. (264) Original in French: "ZICUÑAGA et Mougeot Autorisés à vendre - 5 Pts/kg (Quel cadeau)", file p. 1839. (265) Original in French: "En ce qui concerne Mougeot, Sarrio qui était notre client et aussi le principal opérateur du marché espagnol nous a demandé de ne pas vendre à plus de 5 pts en dessous des prix réguliers du marché". File p. 3916. (266) Original in French: "nous nous sommes fait rappeler que nous ne devions pas vendre moins de PTA 5 en dessous des prix minima affichés" (File p. 11495). (267) Copigraph also announced the price increases agreed for the French market. In addition, Carrs announced for January 1995 the 5 % increase in the price of sheets agreed for the UK (and Irish) market. (268) File p. 4944-4945. For sheets the increase indicated in these graphs is only 2 %, which would imply that the agreed increase for sheets was not fully implemented, at least by Stora. (269) File p. 2742. (270) File p. 7. (271) File pp. 7879-7880. (272) File pp. 7653-7654. (273) File p. 7 and p. 4944. (274) File p. 1859. File p. 11496. (275) File p. 7654. (276) File pp. 4944-4945. The price increases shown in the graphs start at the end of 1993 and continue until the end of 1995. Up to autumn 1995 the Commission has been able to confirm that all these price increases (except the first 2 % sheets price increase) were agreed between carbonless paper producers (at either the general or national cartel meetings). These documents also show that from the end of 1993 onward prices for both reels and sheets increased constantly, while sales volumes fluctuated sharply. The total increases "of the average prices" were the following: from 1993 to 1994: reels +6 %, sheets +14 %; from 1994 to 1995: reels +15 %, sheets +6 %; from 1993 to 1995: reels +21 %, sheets +21 %. (277) File p. 7. (278) Original in French: "ceux qui ne feraient pas évoluer leurs prix en tenant compte cette hausse, se trouveraient en situation financière difficile". File p. 11496. (279) File pp. 937, 7879-7880. The last document shows complete correspondence with the price increases agreed at the general cartel meeting. (280) File pp. 2250-2251 and 2492-2493. This document found on Sappi's premises proves that it told its subsidiaries and merchants (or agents) to announce price increases that were almost identical to the increases agreed at the meeting. For the Spanish market see file pp. 4567-4568 and 4571-4573. (281) File pp. 9953-9954. (282) The announced 10 % increase for reels in the French market was agreed both at the general cartel meeting of 2 February and at the French market meeting of 20 January. AWA, Copigraph, Sappi, Stora and Zanders all announced a 10 % increase in the price of reels to take effect on 1 or 3 April 1995. (283) Only the increases for the Netherlands are different from the increases listed in the minutes of the general cartel meeting of 2 February 1995. (284) File p. 1378. (285) File p. 3043. The fact that AWA had announced this price increase to the customers on 22 February, which is later than the date of Sappi's fax, supports the conclusion that these increases were based on collusion. (286) File pp. 2010-2011. (287) Copigraph announced to customers on the French market 10 % increases for reels and sheets for 3.4 and 18.4.1995 respectively, which correspond to those agreed at the meeting. Carrs also announced to customers increases for sheets corresponding to those agreed for March, May and September for the UK (and Irish) market. At least some of these price increase announcements are to be explained by the firms' participation in the cartel activity (see in particular paragraph (230) on price increase agreement reached in the French market meeting of 20 January 1995 in which Copigraph participated). (288) File p. 5 and 9972. (289) File p. 6. (290) File p. 4476. (291) File p. 7651. Original in French: "[un employé d'AWA]* a indiqué ce que devait être les parts de marché de chacun sur le marché français de l'autocopiant." (292) File pp. 7652-7653 and pp. 7657-7658. (293) Original in French: "Cette réunion donna également lieu à l'expression de dissensions entre les leaders du marché français de l'autocopiant car les hausses de prix n'étaient pas liées à des indications de volume". (294) File pp. 47-51. (295) File p. 4521. Original in Portuguese: "os dados aí indicados saõ estabelecidos com base numa troca de informações entre as empresas participantes e são objecto de discussão nestas reuniões". (296) The word 'is' and the crossing out of words have been added by hand to the document. (297) File p. 47. (298) File p. 7. (299) File p. 1859. (300) File p. 11496. (301) See the judgment of the Court of First Instance in Case T-1/89 Rhône-Poulenc v Commission [1991] ECR II-867, at paragraph 126. (302) See the judgment of the Court of Justice in Case C-49/92 P Commission v Anic Partecipazioni SpA [1999] ECR I-4125, at paragraphs 82 to 87. (303) See Case C-49/92 P Commission v Anic, at paragraphs 96, 110, 121. (304) The Commission has evidence of member companies' participation in the AEMCP meetings starting from the meeting of 23.1.1992. (305) See Table 7, paragraph (228). (306) Sappi's reply to the Statement of Objections, file pp. 20602-20603. (See also Sappi's statements, File pp. 9936 and 9944-9945.) (307) Copigraph's reply to the Statement of Objections, file p. 19566. (308) Carrs' reply to the Statement of Objections, file p. 20348. (309) For the most part Carrs sells sheets only. (310) File p. 218. (311) See above paragraphs (155) to (158). (312) See above paragraphs (165) and Sappi's reply to Commission request for information, file p. 9939. (313) Mougeot's reply to the Request for Information, file p. 7652. (314) See File, p. 1839. (315) Carrs' reply to the Statement of Objections, file p. 20370. (316) For year 1992 the Commission has detailed figures for 6 companies, for 1993 and 1994 for 8 companies and for years 1995-1997 for 9 companies. (317) See paragraph (325). (318) Replies to the Statement of Objections: AWA file pp. 19730-19731, Koehler file pp. 20725-20726 and MHTP (Stora) file pp. 20406-20407. (319) Replies to the Statement of Objections: MHTP file p. 20405, Koehler file p. 20727 (Original in German: "Darüber hinaus war das Austausch von Verkaufsmengen vergangener Zeitraüme auf regionale Einzelfälle beschränkt"). (320) See chapter 1.4.4.3. Allocation of sales quotas and market sharing. (321) Koehler's reply to the Statement of Objections, file pp. 20704-20705. (322) Original in French: "la Communication des griefs ne démontre pas que les réunions de l'AEMCP ont servi de cadre à des mècanismes collusoires avant la restructuration de l'association en september 1993". Mougeot's reply to the Statement of Objections, file pp. 19717-19718. (323) Copigraph's reply to the Statement of Objections, file pp. 19560-19561. (324) Copigraph's reply to the Statement of Objections, file pp. 19562-19565. (325) Koehler's reply to the Statement of Objections, file p. 20708. (326) AWA's statement, file p. 7829. (327) Koehler's reply to the Statement of Objections, file pp. 20705-20712. (328) Koehler's reply to the Statement of Objections, file pp. 20712 (original in German: "Allein dies belegt, dass es ein Kartell in diesem Zeitraum nicht gegeben hat"). (329) Replies to the Statement of Objections: Torraspapel, file p. 20439, Zicuñaga, file p. 18477 and Divipa, file p. 19597. (330) See Final Act of the Agreement on the European Economic Area, OJ L 1, 3.1.1994, p. 3. (331) Pursuant to Article 56(1)(b) of the EEA Agreement, and without prejudice to the competence of the Commission, where trade between Member States of the Community is affected, the ESA is also competent on cases where the turnover of the undertakings concerned in the territory of the EFTA States equals 33 % or more of their turnover in the territory of the EEA. (332) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij N.V. and others v Commission (PVC II), [1999] ECR II-931, at paragraph 715. (333) The case law of the Court of Justice and the Court of First Instance in relation to the interpretation of Article 81 EC applies equally to Article 53 EEA. See recitals No 4 and 15 as well as Article 6 of the EEA Agreement, Article 3(2) of the EFTA Surveillance and Court Agreement as well as Case W-1/94 of 16.12.1994, paragraphs 32-35. (334) The case law of the Court of Justice and Court of First Instance analysed below in relation to the interpretation of Article 81 EC expresses principles well established before the signature of the EEA Agreement. It therefore applies equally to Article 53 EEA. (335) Case 48/69 Imperial Chemical Industries v Commission [1972] ECR 619, paragraph 64. (336) Joined Cases 40-48/73 etc. Suiker Unie and Others v Commission [1975] ECR 1663. (337) See also the judgment of the Court of First Instance in Case T-7/89 Hercules v Commission [1991] ECR II-1711, paragraph 256. (338) See the judgment of the Court of Justice in Case C-199/92P Hüls v Commission, [1999] ECR I-4287, paragraphs 158-166. (339) Case T-7/89 Hercules v Commission, ibid., paragraph 264. (340) Cases T-305/94 etc. Limburgse Vinyl Maatschappij N.V. v. Commission, ibid., paragraph 696. (341) See the judgment of the Court of Justice in Case C-49/92 P Commission v Anic Partecipazioni SpA, [1999] ECR I-4125, at paragraph 81. (342) Ibid., paragraph 83. (343) See Case T-1/89 Rhône-Poulenc v Commission [1991] ECR II-867 paragraph 126; Joined Cases T-25/95 and al., 15 March 2000, paragraph 4027. (344) See Cement Cases (T-25/95 and al.), 15 March 2000, paragraph 2430. (345) See the judgment of the Court of First Instance in Case T-13/89 Imperial Chemical Industries v Commission [1992] ECR II-1021, at paragraph 304. (346) See the judgment of the Court of Justice in Joined Cases 209 to 215 and 218/78 Van Landewyck and Others v Commission, [1980] ECR 3125, at paragraph 170. (347) Bolloré's reply to the Statement of Objections, file p. 19938. (348) Bolloré's reply to the Statement of Objections, file pp. 19939-19946. (349) [...]* was also the Directeur Général (Managing Director) of Bolloré's Thonon mill. (350) File p. 13352-13354. He held his position at Copigraph from 1992 until 1997. (351) MHTP's (Stora) reply to the Statement of Objections, file p. 20405. (352) Commission Decision 1999/641/EC of 25 November 1998, case IV/M.1225. (353) Under Article 5 of Council Regulation (EC) No 2894/94 of 28.11.1994 concerning arrangements of implementing the Agreement on the European Economic Area "the Community rules giving effect to the principles set out in Articles 85 and 86 [now Articles 81 and 82] of the EC Treaty ... shall apply mutatis mutandis" (OJ L 305, 30.11.1994, p. 6). (354) OJ C 207, 18.7.1996, p. 4. (355) See OJ L 343, 30.12.1994, p. 1; AWA's reply to the Statement of Objections, file pp. 19730-19733 and 19751. (356) Sappi's reply to the Statement of Objections, file p. 20623. (357) Joint Cases T-25/95 and al., 15 March 2000, par. 4126-4127. (358) Replies to the Statement of Objections: AWA file p. 19738-19739, MHTP (Stora) file p. 20420, Sappi file p. 20624. (359) AWA's reply to the Statement of Objections, Annex 1: "An economic assessment of the effectiveness of concertation in the carbonless paper market", NERA, December 2000, file p. 19766-19806. (360) Koehler's reply to the Statement of Objections, file pp. 20728-20729. (361) MHTP (Stora) reply to the Statement of Objections, file pp. 20420-20421. (362) This conclusion is based on comparison of AWA's net realised prices in local currency in three countries, France, UK and Spain with the agreed price increases and with the cost of pulp for AWA. The report assumes that AWA's realised prices provide a good approximation for overall market prices and that the pulp prices paid by AWA also represent the general level paid in this industry. The expert report presents a comparison of development of the pulp prices AWA has paid and its carbonless paper prices in Europe during the period 1992-1998. The report concludes that there is a strong correlation between changes in pulp prices and carbonless paper prices. AWA's reply to the Statement of Objections, Annex 1: "An economic assessment of the effectiveness of concertation in the carbonless paper market", NERA, December 2000, file pp. 16-26. (363) Replies to the Statement of Objections: AWA, file pp. 19730-19733, MHTP (Stora), file pp. 20421-40424. (364) Zanders' reply to the Statement of Objections, file pp. 20506-20507. (365) AWA's reply to the Statement of Objections, file pp. 19730-19731. (366) Carrs' reply to the Statement of Objections, file pp. 20344-20346 and 20356. (367) See e.g. the judgement of the Court of First Instance in Case T-354/94 Stora Kopparbergs Bergslags AB vs. Commission ("Cartonboard") [1998] ECR II-2111, paragraph 170. (368) File p. 7. (369) See for instance file pp. 2510, 2719 and 4607. (370) AWA's reply to the Statement of Objections, file pp. 19744-9745. (371) Either itself or through distributors belonging to AWA group. (372) See paragraphs (104), (109), (120), (143), (217) and (228). (373) Replies to the Statement of Objections: Carrs file p. 20371, Copigraph file p. 19566, Torraspapel file p. 20477, and Koehler file p. 20728. (374) MHTP's (Stora) reply to the Statement of Objections, file pp. 20424-20425. (375) Commission Decision 98/247/ECSC of 21 January 1998 in case IV/35.814 - Alloy surcharge, OJ L 100, 1.4.1998, p. 55, at paragraphs 83-84 and Commission decision of 8 December 1999 in case IV/E-1/35.860 - Seamless steel tubes, paragraphs 168 and 169, not yet published. (376) AWA's reply to the Statement of Objections, file pp. 19734. (377) Replies to the Statement of Objections: AWA file pp. 19740-19741, Koehler file pp. 20680-20681 and 20731, Mougeot file pp. 19724. All competitors pleading on losses, except AWA, have provided some annual data on the result of their carbonless paper businesses starting from 1992 until years 1997, 1998 or 1999. The figures, while showing significant variation from year to year, show that these producers made also profits during the relevant period. (378) Replies to the Statement of Objections: Copigraph file pp. 19570-19571 and Bolloré pp. 19946-19947. See also Case T-6/89 Enichem Anic Spa v Commission, ECR [1991] II-1623, at paragraphs 290-291. (379) Refer to footnote 10. (380) Sappi's reply to the Statement of Objections, file pp. 20602 and 20620-20622. (381) Sappi's reply to the Statement of Objections, file pp. 20604-20606 and 20615-20616. (382) File p. 7829. (383) See Judgement of the Court of 18 October 1989 in Case Orkem v Commission [1989] ECR 3283, at para. 20 et al. (384) File pp. 20725-20729. (385) Commission's request for information pursuant to Article 11 of Regulation No 17 dated 5 September 2001, File pp. 21338-;21340. (386) File pp. 21350-21486, 21512-21540.