Naujienos
* Finnish Competition Authority FCA proposes cartel fines to Stora Enso and Metsäliitto
FCA proposes cartel fines to Stora Enso and Metsäliitto
The FCA proposes to the Market Court that it impose competition infringement fines to Stora Enso Oyj and Metsäliitto Osuuskunta for their participation in the forbidden price cooperation and exchange of information in the purchase of timber. The forbidden cooperation was conducted during 1997-2004 and it encompassed the region of the whole country. The infringement fine proposed to Stora Enso amounts to EUR 30 million and the infringement fine proposed to Metsäliitto to EUR 21 million.
No infringement fine is proposed to UPM-Kymmene Oyj, which participated in the forbidden cooperation. The company informed the FCA of the restraint and withdrew from the cartel collaboration. The investigations on the timber trade began in May 2004 after UPM-Kymmene’ announcement. Following the contact, the FCA raided the companies suspected of the cartel.
Metsäliitto has also assisted the FCA in the investigation of the matter, as a result of which a 30% reduction into its infringement fine is proposed. The Market Court shall decide about the infringement fine and the reduction thereto as a first instance.
Grave restriction involved
The FCA finds the conduct of the forest companies a grave competition restriction. The forbidden cooperation has been of many years’ standing, and the intent of the companies has been to restrict mutual competition and to jointly control the price of timber. The Supreme Administrative Court has earlier imposed a competition infringement fine on UPM-Kymmene, Metsäliitto and Stora Enso for restricting competition in the timber procurement market.
UPM-Kymmene, Metsäliitto and Stora Enso annually buy approximately four fifths of all domestic timber. Price collaboration between the companies distorts the price relations and hence has a negative impact on the structure of the market and the functioning thereof.
The success of the business based on the use of the forest assets requires that the market function competitively throughout the production chain. The collaboration between the buyers of the raw material, which has been the target of the investigation, has prevented the normal price formation based on demand and supply relations in the sector.
This is the second time that no infringement fine is proposed on a company who has disclosed a cartel. In all, the FCA has so far received half a dozen leniency applications.
Further information: Director General Juhani Jokinen, tel. +358 9 7314 3389, +358 50 395 2800
Senior Research Officer Saara Vahvaselkä, tel. +358 9 7314 3326
Head of Research Arttu Juuti, tel. +358 9 7314 3614.
