bangers and cash german sausage makers fight cartel fine
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Bangers and cash: German sausage makers fight 'cartel' fine

Egypt Today, egypt today

Egypt Today, egypt today Bangers and cash: German sausage makers fight 'cartel' fine

German sausage makers went to court Tuesday
Berlin - Egypt 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.

egypttoday
egypttoday

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*

bangers and cash german sausage makers fight cartel fine bangers and cash german sausage makers fight cartel fine



GMT 06:29 2011 Monday ,14 November

Matthew cruises to win at Ochoa Invitational

GMT 03:34 2017 Wednesday ,22 March

Tillerson to skip NATO meeting next month

GMT 13:44 2013 Friday ,15 March

Israel suppress Palestinian demonstrations

GMT 16:15 2017 Monday ,01 May

Moroccan Workers’ Syndicate

GMT 11:56 2016 Wednesday ,12 October

Toyota, Suzuki eye partnership as industry consolidates

GMT 15:42 2011 Thursday ,23 June

Express checks in with foursquare

GMT 10:49 2017 Sunday ,13 August

Car rams into crowd at violent Virginia rally

GMT 17:45 2013 Sunday ,20 October

5 Indian spices that are good for your health

GMT 08:41 2012 Saturday ,15 September

Italian magazine: will print Kate topless snaps

GMT 08:02 2012 Tuesday ,05 June

Zoe Saldana in Prabal Gurung

GMT 06:11 2012 Saturday ,15 September

Tunisia’s Media Conflict: Journalists fight for freedom

GMT 14:35 2015 Friday ,24 July

Awqaf Minister hails New Suez Canal project

GMT 16:34 2017 Thursday ,28 December

Hitler's Nazi-parade Mercedes set

GMT 11:22 2011 Monday ,10 October

Paul McCartney to play in Moscow in December

GMT 05:17 2015 Friday ,25 September

Pope expresses solidarity with Muslims after stampede

GMT 05:44 2012 Saturday ,21 April

ATV engine 95 HP

GMT 03:01 2011 Monday ,19 September

Laughter, tears at US television\'s Emmy awards

GMT 12:04 2012 Wednesday ,07 March

6 Music animation draws on 10 years of eclectic radio

GMT 01:00 2015 Sunday ,05 April

Barzani congratulates Abadi on Tikrit victory

GMT 13:24 2015 Thursday ,15 October

Tesla installs 'autopilot' update

GMT 06:17 2012 Monday ,02 January

Countries across the world celebrate the New Year

GMT 04:07 2016 Tuesday ,07 June

For new era of self-driving cars

GMT 08:21 2017 Saturday ,23 December

Saudi-Sudanese Deal to Ease Transfers

GMT 11:08 2017 Thursday ,21 December

Asian markets mostly down as tax cut euphoria wanes
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt 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 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday