Cold storage firms fined by Dutch watchdog
The Netherlands Authority for Consumers and Markets (ACM) imposed fines totalling almost €12.5m in three cases.
Companies involved, Eimskip, Kloosbeheer, Samskip and Van Bon (now H&S Coldstores) have been fined between €450,000 and €9.6m. Eimskip and Samskip said they planned to appeal.
Companies in the cold-storage market are a key link in the food transport chain and different products are stored, ranging from fruit juices and vegetables to fish and meat.
Action at the time of merger talks
ACM said between 2006 and 2009, the companies involved were holding merger talks, but they made arrangements about prices, exchanged competition-sensitive information, and shared customers among each other.
As a result, competition in the cold-storage market was ‘seriously impeded’, it added.
ACM said Kloosbeheer admitted mistakes and cooperated with the investigation so its fine has been reduced by 10%.
Kloosbeheer admitted it had been ‘too open too soon,’ and that competition rules can be violated when exchanging information during merger talks. It is the parent company of Kloosterboer, Daalimpex, Kloosterboer IJmuiden and Van Bon (now H&S Coldstores).
The firm has changed its corporate structure to prevent future violations, said the watchdog.
ACM said the anticompetitive behaviour was discovered in various emails and competition-sensitive information was frequently exchanged.
“For example, the managers informed each other about the price for food storage. They also told each other the current utilization rates of their storage facilities, and thus whether or not they were looking for jobs.
“Sometimes they made arrangements about who would get which customer or about what price increase would be passed on. Also, arrangements were made about bids to potential clients, which meant that it was clear in advance who would get the job.”
Chris Fonteijn, chairman of the board of ACM, said the companies made illegal agreements, and distorted competition.
“During the investigations into the cold-storage market, two other companies also made promises to improve their behaviour. With the fines and these promises, we wish to promote competition in this particular market.”
Planned appeals
Samskip said it became part of the situation having been owner of Kloosterboer IJmuiden and Johan Kloosterboer being the managing director of the company. Kloosterboer also remained involved in the family company, it said.
The firm said it was an intermittent owner of Kloosterboer IJmuiden, having purchased it from Kloosbeheer, the Kloosterboer family company, in 2005 and sold it back to them in 2009.
Kloosterboer IJmuiden was fined €1.4m but as a single company (Kloosterboer Ijmuiden) cannot be fined more than 10% of its turnover, Samskip is made liable and has to pay the difference of €901,000 having been the parent company at the time of the infringements.
Samskip said it did not agree with the ACM that it can be held liable for the anticompetitive behaviour of the Kloosterboer family.
“During the time that Samskip was shareholder of Kloosterboer IJmuiden, Samskip was not in any way involved in the anticompetitive behaviour of Kloosterboer IJmuiden and its managing director and it had no knowledge of such behaviour,” it said.
Attorneys of Samskip are preparing a lawsuit against Kloosbeheer, its managing director and the Kloosterboer family company for all damages it has suffered, the firm added.
In the other appeal, Eimskip said a Dutch holding company, a subsidiary of A1988 hf. was the owner of the coldstore company Daalimpex B.V. from January 2007 until February 2009.
Following the financial restructuring of A1988 hf. in September 2009 the Dutch holding company became a part of the Eimskipafélag Íslands hf.
ACM has concluded that the behavior was not in accordance with competition laws.
Due to the ownership of Daalimpex B.V. during 2007 to 2009 the Dutch holding company could be fined. The company has accrued €900,000 as expenses related to the case and said it planned to appeal.
