Fine upheld against JCB
24 April 2008
The european court of Justice has dismissed JCB's appeal against a € 30,8 million fine for competition infringements, which occurred between 1973 and 1996. JCB has said that upholding of the fine is an “extreme disappointment. The court originally imposed a € 39,6 million penalty on JCB in 2000 for distribution agreements in Europe that date back to 1973, when the UK joined the EU. The fine was reduced -25% by appeal in 2004 but JCB refused to accept the judgement and launched a further appeal to have all the charges dropped.
According to JCB, it attempted to comply with European competition laws when the UK joined the EU by applying for exemption for its distribution agreements. JCB has said that it later amended its agreements, on the advice of the European Commission, and believed that the matter was settled. However, in 2000, the Commission rejected JCB's application for exemption and imposed € 39,6 million penalty on the company.
In its statement, JCB has said that the Commission did not identify the economic impact of the stated infringements in setting the fine. “We are very frustrated that the European Court of Justice has ignored the failings of the Commission and found against us, said JCB managing director and CEO John Patterson.
