(July 4) – “The European Commission said on Tuesday that 120 banks and banking federations across Europe would receive legal warnings alleging they were operating a cartel setting fees for changing euro area currencies,” according to a story in today Financial Times.
“The antitrust watchdog for the 15-nation European Union said institutions in Belgium, Ireland, Finland and Portugal would receive the warning and that further notices would be sent to banks in other countries later in the year.”
“The commission started its investigation into alleged price fixing by euro-zone banks in February 1999, shortly after the launch of the single currency. If found guilty of anti-competitive practices, the commission can impose fines of up to 10 per cent of annual sales.”
“The Belgian Banking Association was quick to say it had not received any legal warnings from the commission. In October of last year, the commission raided Belgian banks KBC Bankassurance, Banque Bruxelles Lambert and the ABB.”
“Last month, the commission fined US company, Archer Daniels Midland, Japan’s Ajinomoto, and three other companies almost E110m ($105.4m) for running an alleged global price-fixing cartel for lysine, an amino-acid. ‘The decision highlights the commission’s determination to fight cartels, the most damaging of all anti-competitive practices,’ the commission said at the time.”