EU competition officials have raided the offices of fresh produce company Fyffes in an investigation into a suspected cartel in the banana and pineapple businesses, according to the Irish Times newspaper.
Go deeper with GlobalData
Up to seven inspectors from the EU competition body and the Competition Authority in Dublin are said to have spent most of the day on Thursday at Fyffes headquarters in central Dublin after they entered the office at around 10am, the paper said.
The visit was co-ordinated with a series of other raids on several major fruit companies in Germany, Belgium and Britain, it said.
The inspectors examined paper and computer-based records held by Fyffes, which has been involved for months in an insider dealing case in the High Court against industrial holding group DCC.
The European Commission’s competition directorate general was not previously known to be investigating the fruit industry.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBut its spokesman Jonathan Todd said last night that the antitrust body had reason to believe that companies under investigation “may have violated” article 81 of the EC Treaty, which prohibits price-fixing and market-sharing practices.
Fyffes’ company secretary Philip Halpenny said the company was co-operating with the investigation, but declined to comment further.
“EU Commission officials today made unannounced visits to Fyffes premises in connection with inquiries they are making into the banana and pineapple trade in the EU,” he said.
“The visits related to a wider inquiry that includes all of Fyffes’ principal competitors in the European market and we are co-operating with those inquiries.”
It was unclear late last night whether the competition officials plan any further visit to Fyffes’ offices or whether they have demanded that the company produce any further records.
Todd said that surprise inspections were “a preliminary step” in investigations into suspected cartels.
He declined to answer when asked whether the Commission was acting on information received from within the industry or any other source.
“The European Commission can confirm that on June 2nd, 2005, commission officials carried out unannounced inspections at the premises of several producers and distributors of bananas and pineapples in Germany, Belgium, United Kingdom and Ireland,” he said.
“The fact that the European Commission carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour nor does it prejudge the outcome of the investigation itself.”
Todd said that the commission respected the rights of defence, in particular the right of companies to be heard in anti-trust proceedings.
