sausage makers fight cartel fine
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today
Almaghrib Today, almaghrib today
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today

Bangers and cash

Sausage makers fight 'cartel' fine

Almaghrib Today, almaghrib today

Almaghrib Today, almaghrib today Sausage makers fight 'cartel' fine

Regulators handed down record fines
Frankfurt am Main - Al Maghrib Today

German sausage makers went to court Tuesday to fight back against a record anti-trust fine for years of alleged price fixing in a sizzling scandal involving the nation's favourite food.

The Federal Cartel Office slapped a 338 million euro ($400 million) fine on a string of German sausage producers in 2014, accusing them of colluding for decades to squeeze higher prices out of meat lovers.

But the powerful industry hit back with many of the accused exploiting a legal loophole to escape the penalty, leaving just a small group of companies on the hook for a fraction of the bill.

Of the 22 firms and 33 individuals initially fined -- including big name brands Herta and Boeklunder -- just four sausage producers appeared in the Duesseldorf regional court to contest their share of the punishment -- some 22.6 million euros.

They are Heidemark Maesterkreis, Wiesenhof, Franz Wiltmann and Ruegenwalder Muehle as well as five company officials.

They deny accusations of belonging to a so-called "sausage cartel" and refuse to pay up.

Eleven other firms have accepted penalties to the tune of some 70 million euros.

But the remaining companies made use of a legal sleight of hand and simply restructured to make nearly 240 million euros of the total bill disappear.

Under the loophole -- dubbed the "sausage gap" -- parent companies could not be held liable for the anti-trust fines of a subsidiary if that subsidiary ceased to exist.

The legal trickery ended earlier this year with a change in German competition law.

Wolfgang Ingold, the chief executive of Franz Wiltmann, told industry publication Lebensmittel Zeitung he had been advised to employ the same tactic.

"But we have nothing to hide and we want to see that confirmed by a court," he was quoted as saying.

- Wurst-case scenario -

The legal action is not without risks.

In a worst-case scenario, the court could impose an even heftier fine if it believes the accused have been telling porkies.

The Duesseldorf court has scheduled hearings in the case until May.

The "sausage gap" loophole is expected to loom large over the proceedings, according to Rene Grafunder, a Berlin-based expert in competition law at Dentons law firm.

"It seems odd that small and medium-sized companies have to pay millions in fines, while their larger competitors get away without any punishment at all," he told DPA news agency.

The "Wurstkartell" claims stunned Germans when they first came to light in a country known for its fondness of bratwurst.

Although consumption has fallen slightly in recent years, Germans still eat on average 60 kilos of meat annually, with sausages and processed meats making up around half that figure -- equivalent to a hot dog a day.

The cartel was nicknamed the "Atlantic group" after the Hamburg hotel where the first meeting was held to discuss pricing in the early 1980s, according to the FCO anti-trust watchdog.

Acting on an anonymous tip-off, the FCO found that the companies kept in regular touch and colluded to force German food retailers to pay higher prices for their pork and poultry products.

The "wurst" scandal capped a record year for the FCO, coming hot on the heels of 280-million-euro fine imposed on three large sugar producers for anti-competitive behaviour.

Also in 2014, more than 10 breweries were fined over 300 million euros for fixing beer prices.

Source: AFP

almaghribtoday
almaghribtoday

GMT 10:09 2018 Friday ,19 January

Police raid France's Lactalis

GMT 14:20 2018 Thursday ,18 January

Suppressing a sneeze can be dangerous

GMT 12:23 2018 Wednesday ,17 January

Populists target vaccine decree

GMT 12:39 2018 Tuesday ,16 January

Lactalis feels heat as families rebuff

GMT 12:01 2018 Monday ,15 January

Embattled dairy chief breaks silence

GMT 11:26 2018 Sunday ,14 January

One separated Gaza twin dies

GMT 11:31 2018 Saturday ,13 January

France laments 'dysfunction'

GMT 09:22 2018 Friday ,12 January

Cancer shatters gay marriage dreams
Almaghrib Today, almaghrib today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sausage makers fight cartel fine sausage makers fight cartel fine

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sausage makers fight cartel fine sausage makers fight cartel fine

 



Almaghrib Today, almaghrib today Skincare PR Performance Full Year 2017

GMT 09:22 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Almaghrib Today, almaghrib today New hunt for flight MH370 gets under way

GMT 11:03 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Almaghrib Today, almaghrib today Modern colorful bedroom renovation

GMT 10:57 2017 Thursday ,21 December

Modern colorful bedroom renovation
Almaghrib Today, almaghrib today Puigdemont candidate for Catalan president

GMT 13:56 2018 Tuesday ,23 January

Puigdemont candidate for Catalan president
Almaghrib Today, almaghrib today Turkey detains dozens more

GMT 10:47 2018 Wednesday ,24 January

Turkey detains dozens more
Almaghrib Today, almaghrib today The Rake announces editorial updates

GMT 10:46 2018 Tuesday ,16 January

The Rake announces editorial updates
Almaghrib Today, almaghrib today Europe brings on charm and blue skies

GMT 11:51 2018 Tuesday ,23 January

Europe brings on charm and blue skies
Almaghrib Today, almaghrib today For the Variety of Interior Design Styles

GMT 10:46 2017 Tuesday ,19 December

For the Variety of Interior Design Styles
Almaghrib Today, almaghrib today US Christian tourists see deep meaning

GMT 13:44 2018 Monday ,22 January

US Christian tourists see deep meaning
Almaghrib Today, almaghrib today Amazon to open first cashierless shop

GMT 10:03 2018 Tuesday ,23 January

Amazon to open first cashierless shop

GMT 10:43 2018 Tuesday ,23 January

Volkswagen clinches record sales

GMT 18:00 2018 Wednesday ,29 August

U.N. schools open in West Bank, Gaza

GMT 18:33 2018 Tuesday ,23 January

France says it fell short on greenhouse gas emissions

GMT 17:11 2011 Tuesday ,02 August

S&P downgrades Nokia, citing dim outlook

GMT 13:24 2015 Sunday ,22 November

Qatar seeks to appeal deadly mall blaze acquittals

GMT 20:47 2017 Wednesday ,01 February

One ingredient five ways: Prunes

GMT 21:45 2017 Tuesday ,31 October

December 21 - January 18

GMT 18:40 2017 Tuesday ,26 December

Turkish Foreign Minister Affirms his Country's Concern

GMT 00:14 2017 Wednesday ,16 August

Enas Al Deghidy promoted gender equality in her works

GMT 19:06 2015 Friday ,13 November

'Star Wars'a game-changer in special effects

GMT 22:37 2017 Saturday ,25 February

White House bars critical media outlets

GMT 22:08 2017 Saturday ,30 September

June 21 - July 21

GMT 12:08 2016 Monday ,14 November

Greek islanders pay homage to 'lovely Leonardos'

GMT 07:26 2017 Wednesday ,15 November

Mazen hails of commemoration

GMT 20:32 2016 Thursday ,05 May

Wave of dead sea creatures hits Chile's beaches

GMT 00:21 2017 Thursday ,16 February

Adult swaddling therapy fad hits Tokyo

GMT 10:01 2017 Sunday ,12 November

Hollywood takes break from scandal
Almaghrib Today, almaghrib today
 
 Almaghrib Today Facebook,almaghrib today facebook  Almaghrib Today Twitter,almaghrib today twitter Almaghrib Today Rss,almaghrib today rss  Almaghrib Today Youtube,almaghrib today youtube  Almaghrib Today Youtube,almaghrib today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

.almaghribtoday .almaghribtoday .almaghribtoday .almaghribtoday
almaghribtoday almaghribtoday almaghribtoday
almaghribtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
almaghribtoday, Almaghribtoday, Almaghribtoday