13.01.2004

Court reduces £25 million fine for JCB

The Court of First Instance in Luxembourg, today quashed a number of charges of anti-competitive trading against JCB and ordered a significant reduction in a £25 million European Commission fine.

The Court instructed the penalty, which was imposed in 2000, to be lowered by 25 per cent, following an appeal by JCB against five charges of alleged anti-competitive behaviour.

In upholding the appeal, the Court quashed three of the five charges against JCB. The European Commission has also been ordered to pay 25 per cent of JCB’s costs of the appeal.

The company is now considering whether to lodge an appeal to the European Court of Justice in Luxembourg. Part of the Court of First Instance’s judgement stated: “The lack of sufficient proof regarding the three other elements of the infringement found in the contested decision justifies a significant reduction of the amount of the fine imposed.”

JCB chief executive, John Patterson said: “Although the judgement vindicates JCB’s decision to appeal, we are naturally disappointed that the Court did not uphold the appeal in its entirety.

“However, we welcome the recognition that the level of the fine was excessive. We have always argued that the restrictions central to the allegations were merely the lawful implementation of a dealer agreement, which was notified to and approved by the Commission in 1975/6 and re-notified in 1980 and again in 1995.

“We will now be examining the Court’s judgement in detail before deciding whether an appeal will be lodged.”