ADM Price Fixing Fine Upheld

BRUSSELS - May 18/06 - SNS -- A U.S. $56.6 million or Euros 43.9 million fine against Archer Daniels Midland Co. for fixing the price of lysine used in animal feed was upheld by the European Union's Court of Justice.

Arguments the fine was excessive were dismissed by the court which noted the company could have been fined up to 10% of its annual sales. ADM was also forced to pay $100 million in fines in the United States, where the cartel, which also included Ajinomoto Co. Inc., Kyowa Hakko Kogyo Co. Ltd., Sewon Corp., and Cheil Jedang Corp, was uncovered.

The European Commission’s investigation started in July 1996 when Ajinomoto, a Japanese company, informed the Commission about the cartel. Ajinomoto's action came immediately after the Commission adopted its Leniency Notice on the non-imposition or reduction of fines in cartel cases (O.J. C 207 of 18 July 1996, replaced in 2002 by O.J. C 45 of 19 February 2002).

The investigation showed that ADM, Ajinomoto Co (Japan), Cheil (Korea), Kyowa Hakko (Japan) and Sewon (Korea) had fixed prices and sales volumes, and had exchanged individual information on sales volumes of synthetic lysine. The arrangements covered the whole of the EEA and lasted at least from July 1990 to June 1995. The Commission found that the cartel represented a very serious infringement of the EC competition rules that justified imposing heavy fines on the companies involved.