THE EU Court of Justice in Luxembourg has dismissed the appeal of Eni SpA (ENI) and its subsidiary Polimeri Europa, now Versalis S.p.A, to cut the EUR181.5 million fine for conniving with other companies to fix prices of synthetic rubber. The Italian energy company argued against being held liable for the conduct of its two subsidiaries, being their parent company.
In 2011, a lower court reduced Eni’s EUR272.2 million to EUR181.5 million.
The court said that “Since the parent company and its subsidiary form, in the present case, a single undertaking, the commission may impose fines on the parent company without having to establish its individual involvement in the infringement.”
In 2006, the European Commission weighed down EUR519 million (US$681.6 million) fines on five companies found operating a cartel in synthetic rubbers between 1996 to 2002.
Five companies was found to have participated in the cartel: German-based Bayer AG, which tipped off the cartel and has not been fined; Royal Dutch Shell; US-based Dow Chemical; Czech Republic’s Unipetrol; and Poland’s Trade-Stomil.