ACM imposes fines on four companies for illegally sharing the market for carrots
The Netherlands Authority for Consumers and Markets (ACM) has imposed fines, totaling over 2.5 million euros, on four companies that shared among each other the production, processing, and sale of different types of carrots. The agreements between Laarakker, VanRijsingen, Veco, and Verduyn had been made for ten years. Competition between these firms was thus restricted. Laarakker and Verduyn had notified ACM of their illegal conduct, and were thus given reductions of their fines. All companies have acknowledged the violation, and have cooperated with the procedure after ACM had conducted dawn raids following various indications it had received.
Martijn Snoep, Chairman of the Board of ACM, explains: “Businesses that share the market among each other deny their buyers the benefits of competition. It is good that these agreements have come to an end, and that these companies wanted to make a clean sweep by actively cooperating with the investigation and acknowledging the violation.”
What was this case about?
These four companies sell carrots and Parisian carrots to businesses in the canning and frozen-food industries in the Netherlands, Belgium, and Germany. In the canning industry, carrots are predominantly used in combination with green peas. Unlike regular carrots, Parisian carrots are spherical in shape, and are preferred on the German market.
In a 2008 written agreement, Laarakker, VanRijsingen, Veco, and Verduyn agreed that, for a period of ten years, Veco would refrain from producing, processing, and selling carrots. Laarakker, VanRijsingen, and Verduyn would refrain from producing, processing, and selling Parisian carrots. It was also agreed that Veco would be financially compensated. Compensation payments were actually made. In addition, Laarakker and Veco made additional arrangements on the supply of Parisian carrots to German buyers. VanRijsingen and Verduyn were not involved in this agreement.
ACM and competition oversight
ACM ensures that markets work well for people and businesses. That is why ACM enforces compliance with competition rules. Businesses that make illicit price-fixing agreements, market-sharing agreements, or that exchange other competition-sensitive information are liable to punishment. These kinds of agreements lead to higher prices, reduced quality, and less innovation. In its oversight efforts, ACM also uses tip-offs and reports submitted by consumers and businesses about possible violations. That is how ACM was able to track down this case.
Would you like to submit a tip-off or a report: please contact us.
Confess your cartel and escape a fine
Shortly after ACM had conducted dawn raids following indications from market participants, Laarakker and Verduyn contacted ACM’s Leniency Office and handed over additional information about the agreements. That is why they have been given substantial reductions of their fines. The other companies acknowledged the violation at a later stage in the procedure, and subsequently cooperated with the simplified procedure. In return, they, too, were given a reduction of their fine.
Companies that are involved in illegal agreements and wish to make a clean sweep have the opportunity to contact ACM, and apply for leniency. The first company that comes forward may escape the fine altogether. Companies that are in the same cartel and come forward later and cooperate with ACM may also qualify for a reduction of their fine.
For more information about leniency: Confess your involvement in a cartel
See also
14-12-2023 Public decision on carrots and Parisian carrots (in Dutch)
1-12-2021 ACM investigates possible cartel in the food processing sector
More in this case
14-12-2023 Public decision on carrots and Parisian carrots (in Dutch)