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The measures adopted by DaimlerChrysler infringe the provisions of Article 81(1) of the EC Treaty, which prohibits all agreements between undertakings which may

affect trade between Member States, and which have as their object or effect theprevention, restriction or distortion of competition within the Single Market. Moreover,

Regulation 1475/95 prohibits car manufacturers and their importers from restricting,

either directly or indirectly, the freedom of final consumers to buy new motor vehicles inthe Member State of their choice. It therefore assures that European consumers have theoption of buying a car wherever it is most advantageous to them. The Regulation

furthermore states that the freedom of dealers to determine prices and discounts inreselling to end consumers must not be restricted. This means that the sales prices and

conditions must not be fixed by the manufacturer. They have to be determined by eachindividual dealer.

The amount of the fine takes into account the gravity of the infringements (for

that matter the position of the company on the market is also looked at) and their durationThe fine must also have a sufficient deterrent effect on DaimlerChrysler and other

companies.

The first infringement, the obstruction of parallel trade, is directly jeopardisingthe proper functioning of the Single Market by partitioning national markets. For thisreason it has to be qualified as "very serious". In addition, it constitutes an infringement

of long duration: the 15% deposit obligation is in force since 1985, while the instructionto distributors in Germany not to sell outside their respective sales territories was appliedfrom February 1996 to June 1999.

The restrictions imposed on the sale of cars to leasing companies can becategorised as a "serious infringement" of medium duration (5 years; this practice is still

ongoing).Finally, price fixing also has to be seen as a "serious infringement" and of

medium duration (around 4 years in this case; it was terminated in 1999).

Brussels, 21 November 2001

Commission imposes fines on vitamin cartels

The European Commission today fined eight companies a total of 855,22 euro

million for participating in eight distinct secret market-sharing and price-fixing cartelsaffecting vitamin products. Each cartel had a specific number of participants and

duration, although all operated between September 1989 and February 1999. BecauseSwiss-based company Hoffman-La Roche was an instigator and participated in all thecartels it was given the highest cumulative fine of 462 million euro (followed by

Germanys BASF with 296 million euro).

"This is the most damaging series of cartels the Commission has ever investigateddue to the sheer range of vitamins covered which are found in a multitude of productsfrom cereals, biscuits and drinks to animal feed, pharmaceuticals and cosmetics" said

Competition Commissioner Mario Monti. "The companies' collusive behaviour enabledthem to charge higher prices than if the full forces of competition had been at play,

damaging consumers and allowing the companies to pocket illicit profits. It is particularlyunaceptable that this illegal behaviour concerned substances which are vital elements for

nutrition and essential for normal growth and maintenance of life".