The EC has imposed fines ‘as a deterrent’ to companies tempted to infringe fair trade rules.

The European Commission (EC) has fined four international glass manufacturers accused of fixing the price of flat glass between 2004 and 2005.

Those involved in the cartel are Asahi of Japan, US-based Guardian, Pilkington of the UK and Saint-Gobain, based in France.

The Commission said it has ‘established that in 2004 and 2005 representatives of these companies met covertly at hotels and restaurants around Europe. At these meetings they conspired to increase prices for flat glass, discussing both the amount and the timing of price increases.’

As a consequence, the companies have been fined a total of €486.9 million (£348.2m). Guardian has been ordered to pay €148m and Pilkington €140m, whilst Saint-Gobain and Asahi have been fined €133.9m and €65m respectively.

The amounts are based on a variety of factors set out in the EC’s 2006 Notice on Fines and take into account issues such as the turnover of the companies on the affected market, as well as the duration and gravity of the infringements.

On announcing the move, Neelie Kroes, European Commissioner for Competition Policy, said: “The important thing is that the fine as a whole is sufficiently deterrent, so that none of these companies will be tempted to infringe the rules again in future.

“The companies involved knew all too well that what they were doing was illegal. They thought that they would not be found out. They thought that the increased prices that they agreed were worth the risk. They were wrong.”

By Natasha Piscitelli