The European Commission has fined thread producers from Germany, Belgium, The Netherlands, France, Switzerland and the United Kingdom a total of €43.497 million for operating cartels in the market for industrial thread - used in a variety of industries to sew or embroider products such as clothes, leather goods, and footwear - in violation of EC Treaty rules on restrictive business practices.

Cartel behaviour is illegal, unjustified and unjustifiable, and will be punished severely no matter how large or small the companies involved,” declared Competition Commissioner Neelie Kroes. I will not allow consumers to be denied the benefits of the Single Market by companies carving up markets between themselves.”

The companies involved were: Ackermann Nähgarne GmbH & Co, Amann und Söhne GmbH, Barbour Threads Ltd, Belgian Sewing Thread N.V., Bieze Stork B.V., Bisto Holding B.V., Coats Ltd, Coats UK Ltd, Cousin Filterie SA, Dollfus Mieg et Cie SA, Donisthorpe & Company Ltd, Gütermann AG, Hicking Pentecost plc, Oxley Threads Ltd, Perivale Gütermann Ltd, and Zwicky & Co AG.

The decision to impose the fines was based on information obtained during unannounced inspections carried out by the Commission in November 2001 at the premises of several y producers of textile/haberdashery products. During these inspections and the subsequent investigation, the Commission discovered evidence that undertakings had taken part in three cartel agreements: a cartel on the market in thread for industrial customers in Benelux and the Nordic countries from January 1990 until September 2001; a cartel on the market in thread for industrial customers in the United Kingdom from October 1990 until September 1996; and a cartel on the market in thread for automotive customers in the European Economic Area (EEA) from May/June 1998 until 15 May 2000.