Competition - Fines for providing incorrect information23/11/04 / cata_european-union-news

In June 2004, the European Commission decided, for the fifth time in the history only, to impose a fine to a company for providing incorrect or misleading information in merger proceedings. The company fined is the carton packaging company Tetra Laval B.V.

The Commission discovered that during its examination of Tetra Laval’s acquisition of Sidel in 2001, Tetra Laval had failed to fully disclose relevant research & development data and intellectual property rights by not providing information about the Tetra Fast technology. This failure happened both in the Form CO and in response to a letter in which the Commission asked for information, which should have led to the disclosure of the Tetra Fast technology. The existence of the Tetra Fast technology was revealed only after the adoption of the Commission’s decision of October 2001.

The Commission imposed a fine of EUR 90,000 for the infringements. It should be noted, however, that the fines in question were imposed under the old merger regulation. The new Merger Regulation (see ECLN 12/2003 – 1/2004) in force since 1 May 2004, companies can be fined up to 1% of their aggregate turnover for supplying incorrect or misleading information.