The European Court of Justice (ECJ) dismissed the appeal brought by Repsol, General Quimica SA, and Repsol Quimica SA challenging a $4.9 million fine levied by the Commission. The ECJ upheld the fine, but reversed a lower court decision to hold the companies jointly and severally liable.
In 2005, the EC fined the companies for participating in a cartel that fixed rubber prices and exchanged confidential information. The next year Repsol and Repsol Quimica attempted to have the EC’s decision annulled, arguing that they were not responsible for the conduct of their subsidiary. The ECFI upheld the lower court’s decision and in addition found that the companies had engaged in restrictive business practices. The companies were held jointly and severally liable and fined a total of $108.9 million.
Once on appeal, the ECJ reversed the joint and several liability portion of the decision because the lower court failed to consider evidence that General Quimica operated independently from its parent companies. But the ECJ concluded that because that evidence would not have affected the EC’s decision, the fine remained intact.