EU fines banana importers for cartel actions

The European Union slapped a 60.3 million euros ($82.9 million) fine on the importers of Dole and Del Monte bananas Wednesday, claiming they operated an illegal cartel.

The EU said Chiquita Brands International Inc. also joined the cartel that fixed prices for bananas in eight EU nations, but the American banana giant was not fined because it blew the whistle on the scheme.

U.S. company Dole Food Co. was fined 45.6 million euros ($62.7 million) for its role in the cartel, which operated from 2000 to 2002, the European Commission said in a statement. U.S.-German company Weichert, which imported Del Monte bananas at the time, received a 14.7 million euros ($20.2 million) fine.

The EU said Del Monte Foods Co. was jointly liable for paying the Weichert fine as it controlled the company at the time of the infringement.

The cartel set prices for bananas in Austria, Belgium, Denmark, Finland, Germany, Luxembourg, the Netherlands and Sweden. The EU said the retail banana market was worth around 2.5 billion euros ($3.4 billion) in the eight countries in 2002.

"It is totally unacceptable for companies to have rigged prices in this manner and the companies concerned must learn the hard way that the commission will not tolerate such behavior," said EU Competition Commissioner Neelie Kroes.

The EU started its investigation after Chiquita applied for immunity from the EU's cartel rules in 2002 and European regulators raided the premises of several banana importers.