European Court Cuts SGL Fine

10 May 2004 00:01  [Source: ICB Americas]

The European Court of First Instance has reduced the fines imposed by the European Commission on SGL Carbon and a number of other graphite producers, based on their involvement in a graphite electrodes cartel.

However, SGL is now taking its case against the fines to the higher European Court of Justice (ECJ) after the Court of First Instance dismissed the company’s claim that it had already been punished sufficiently by paying fines of $145 million imposed by the US Department of Justice for its participation in the cartel.

“This fundamental issue of double jeopardy, or that you cannot be fined twice for the same offense, has to be decided by the ECJ, which is the highest court in the European Union,” says an SGL spokesperson. “We are also contesting whether the Commission should be able to act as both judge and jury in these antitrust cases.”

SGL’s fine was reduced by 16 percent to €69 million ($82 million) by the Court of First Instance, on the grounds that the Commission misapplied certain rules drawn up by the Commission itself.

Four Japanese companies—Tokai Carbon, Nippon Carbon, Showa Denko and SEC Corp.—had their fines cut by 40 to 50 percent.

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