FOLLOW US

America October 18, 2023 4 mins read

Clariant Loses €155M Chemical Cartel Fine

America ı By Rihem Akkouche

0 Comments

Clariant Loses €155M Chemical Cartel Fine

In a gripping legal showdown, Clariant, the chemical giant, was dealt a staggering blow as it failed to shrink a €155.7 million ($164.2 million) fine imposed for its involvement in an ethylene purchasing cartel. European judges, in a decision that left the company reeling, upheld the European Commission's discretion in setting these substantial fines for breaches of competition law.

Clariant AG and Clariant International AG mounted a fierce legal battle to mitigate the fine levied by the executive arm of the European Union. The fine stemmed from the chemical company's participation in an ethylene purchasing cartel operating between December 2011 and March 2017, alongside chemical and specialty material companies Celanese and Orbia. A fourth company secured full immunity by exposing the cartel, eluding an aggregate fine of nearly €190 million.

Clariant Loses €155M Chemical Cartel Fine : Clariant's Legal Struggle

Clariant embarked on a mission to annul part of the Commission's decision regarding a €94 million fine. Their aim was to reduce it to a "proportionate amount." However, the General Court of the European Union emphatically rejected this quest. The Commission, far from backing down, advocated for an even steeper penalty, a staggering €181 million.

The crux of Clariant's argument was that the Commission unjustly inflated the basic fine, failed to exercise its discretion properly, and imposed a penalty far exceeding the necessary deterrent for similar offenses. Clariant contended that mitigating circumstances had not been considered in the fine calculation.

The Swiss multinational giant asserted that the cartel was put in place by a company it acquired 14 years later. It maintained that only one Clariant employee had participated in the misconduct, entirely unbeknownst to other company staff. This led to claims that the Commission had violated the principles of proportionality, equal treatment, protection of legitimate expectations, and legal certainty.

Additionally, Clariant argued that the Commission failed to adequately explain the rationale behind increasing the basic fine. Nevertheless, the General Court rejected this argument, ruling that the Commission had meticulously outlined its reasons in the decision.

Competition Law Breaches Unveiled

The European Commission contended that the companies, including Clariant, had engaged in the exchange of price-related information and had conspired to manipulate the monthly supply contract price for ethylene. This collusion substantially impacted the market price, causing harm to sellers of the industrial chemical.

Although the Commission had not verified whether the price manipulation was successful, it deemed these practices as an agreement to restrict competition within the ethylene market.

Clariant Loses €155M Chemical Cartel Fine :  A Pivotal Rejection

The Commission had further sought to repeal a 10% reduction in the fine for cooperation with the EU executive during the settlement of the fine. Their argument asserted that Clariant had questioned facts they had confirmed during the administrative procedure. However, the General Court vehemently rejected this, refusing to increase the fine to €181 million.

In an additional blow, the Court ordered Clariant to bear 90% of the Commission's legal costs.

Timeline of the Violations

The Commission imposed this substantial fine after discovering that Clariant had been involved in exchanging sensitive commercial and pricing-related information while fixing a price element associated with ethylene purchases in Belgium, Germany, France, and the Netherlands from December 26, 2011, to March 29, 2017.

Silent on the Verdict

In response to the verdict, Clariant maintained silence, refraining from issuing an immediate comment on the ruling. The European Commission spokesperson, on the other hand, acknowledged the judgment and highlighted its significance.

"This sends an important signal on the soundness of the Commission's assessment, which in turn may influence companies' decisions to appeal," the spokesperson remarked. As for the Commission's unsuccessful attempt to augment the fine, it vowed to scrutinize the judgment closely to inform its future actions.

Clariant Loses €155M Chemical Cartel Fine : The Decision-Makers

The panel of judges presiding over this case included General Court President Marc van der Woude, Judge-Rapporteur Geert De Baere, along with Judges Gabriele Steinfatt, Krisztián Kecsmár, and Suzanne Kingston.

Legal Representation

Clariant was represented by Frank Montag and Maria Dreher-Lorjé of Freshfields Bruckhaus Deringer LLP. The European Commission was represented by Adela Boitoș, Ion Victor Rogalski, and Jan Szczodrowski of the Legal Service of the EU Commission.

Previous Article

Citadel Sues SEC in Eleventh Circuit Over Consolidated Audit Trail Funding

Read More
4594 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 17, 2026
F-16 Crash in Michigan Triggers Evacuation, Pilot Ejects Safely
By – Rachel Moore
America September 17, 2026
Infineon $1.1B Memory Unit Sale Hands Winbond a Chip Legacy Reborn
By – Rachel Moore
America September 17, 2026
Morgan & Morgan $1B AI Investment Signals Arms Race in Injury Law
By – Tyler Brooks
Breaking News September 17, 2026
Fed Rate Hike Adds to Americans’ Cost-of-Living Squeeze
By – Michallie Harrison
America September 17, 2026
AI Safety Debate Turns to Synthetic…

Key Takeaways OpenAI’s Hugging Face breach has intensified questions over…

By – Samuel Lopez
America September 17, 2026
America’s Golden Dome Pushes U.S. Missile…

Key Facts The Space Force is developing low-Earth-orbit interceptors intended…

By – Samuel Lopez
America September 17, 2026
State Farm and Allstate File Plans…

Key Takeaways State Farm is proposing a limited return centered…

By – Samuel Lopez
America September 16, 2026
May Mobility and ACP SPAC Deal…

The autonomous vehicle technology company and blank-check firm ACP Holdings…

By – Tyler Brooks
America September 16, 2026
Fed Meeting Set to Deliver First…

Markets don’t always move in a straight line — sometimes…

By – Tyler Brooks
America September 16, 2026
Jeanie Poling Died at 67, Leaving…

Some musicians fill arenas; others fill something arguably harder to…

By – Tyler Brooks
America September 16, 2026
Jeanie Poling Died at 67, Leaving…

Some musicians fill arenas; others fill something arguably harder to…

By – Tyler Brooks
America September 16, 2026
Ed Sheeran Macklemore Fallout Sparks Mass…

A concert tour is supposed to build momentum night after…

By – Tyler Brooks
America September 16, 2026
NBC Helicopter Crash Shakes Los Angeles…

For decades, television news helicopters have hovered over Los Angeles…

By – Tyler Brooks
America September 16, 2026
Pentagon Admits Space Weapons Are Already…

Key Takeaways The U.S. has confirmed for the first time…

By – Samuel Lopez
America September 16, 2026
CLARITY Act Stalls In Senate As…

Key Takeaways Senate Democrats opposed advancing the CLARITY Act after…

By – Samuel Lopez
America September 15, 2026
NFP Acquires Minnesota’s Moores in Strategic…

Growth in the insurance world often looks less like a…

By – Tyler Brooks
And More September 14, 2026
Sydney Sweeney and Scooter Braun Celebrate…

Sydney Sweeney celebrated her 29th birthday with a public declaration…

By – Jackie Allen
America September 13, 2026
AI Whistleblowers:  Warnings  Coming From Inside…

AI Whistleblowers are increasingly sounding the alarm about the speed…

By – Jackie Allen
America September 13, 2026
Serena Williams’ Daughters Make History as…

Serena Williams has built one of the most decorated careers…

By – Jackie Allen
America September 13, 2026
KJ Biermann Faces Seven Felony Charges…

KJ Biermann, the 15-year-old son of “Real Housewives of Atlanta”…

By – Jackie Allen
America September 13, 2026
Team USA Reaches Women’s Basketball World…

BERLIN — Team USA advanced to the FIBA Women’s Basketball…

By – Jackie Allen
America September 13, 2026
In-House Attorneys’ Group Takes Rival to…

Key Takeaways The Association of Corporate Counsel has filed suit…

By – Samuel Lopez
America September 15, 2026
Oracle 6 AM Layoff Email Blindsides…

Most people wake up to alarms, coffee, maybe a weather…

By – Rihem Akkouche
America September 15, 2026
Massachusetts AG Joins 21-State Coalition Suing…

Key Takeaways Massachusetts Attorney General Andrea Campbell has joined attorneys…

By – Samuel Lopez
America September 15, 2026
Baldwin Insurance Group Goes Private in…

Key Takeaways Baldwin Insurance Group shares surged nearly 8% after…

By – Samuel Lopez
America September 15, 2026
Pentagon Breaks Decades of Silence, Confirms…

Key Takeaways Air Force Secretary Troy Meink has confirmed, for…

By – Samuel Lopez
America September 14, 2026
NASA Responds to Presidential Directive, Targeting…

Key Takeaways NASA is moving quickly to design a new…

By – Samuel Lopez
America September 14, 2026
ESA Scientists Can Now Predict Where…

Key Takeaways ESA’s NEO Coordination Centre has built a new…

By – Samuel Lopez
America September 14, 2026
TMZ Ties Itself to the Hayden…

Key Takeaways TMZ is reporting that law enforcement sources believe…

By – Samuel Lopez
America September 13, 2026
Bayer’s $7.25 Billion Roundup Settlement Faces…

Key Takeaways Bayer’s Monsanto unit will ask a Missouri judge…

By – Samuel Lopez
America September 13, 2026
Tylenol Maker and Pharmacy Chains Ask…

By Samuel López | USA Herald Tylenol maker Kenvue and…

By – Samuel Lopez
America September 13, 2026
Lawyers Are Getting Burned by AI…

Key Takeaways Courts across the country have been sanctioning lawyers…

By – Samuel Lopez
America September 10, 2026
41% of Lawyers Say Legal Careers…

Key Takeaways More than 41% of surveyed lawyers say the…

By – Samuel Lopez
America September 10, 2026
Anthropic Says It Caught Scientists Trying…

Key Takeaways Anthropic’s newest threat intelligence report details five case…

By – Samuel Lopez
America September 11, 2026
Bears and RB Swift $33.75M Extension…

Sometimes the best deals get done before the clock even…

By – Tyler Brooks
America September 11, 2026
Skywatchers: Moonshadow Creates Dramatic Blood Moon…

A Moonshadow transformed the night sky Aug. 27 as the…

By – Jackie Allen
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter