Carrot producers fined €2.5 million for collusion, anti-competitive practices

Four Dutch carrot growers and sellers have each been fined a total of over 2.5 million euros for making prohibited agreements to divide the market among themselves. According to the Netherlands Authority for Consumers and Markets (ACM), these agreements significantly limited competition.

The companies involved are Laarakker, VanRijsingen, Veco, and Verduyn. These four firms sell washed carrots (waspeen) and Parisian carrots to canning and frozen food manufacturers in the Netherlands, Belgium, and Germany.

In a written agreement made in 2008, it was decided that for a period of ten years, Veco would not engage in the cultivation, processing, and sale of washed carrots. Meanwhile, Laarakker, VanRijsingen, and Verduyn agreed not to involve themselves in the cultivation, processing, and sale of Parisian carrots. It was also agreed that Veco would be financially compensated, and actual compensation payments occurred.

Following market signals that prompted company visits by the ACM, Laarakker and Verduyn disclosed extra details about their agreements with the ACM. As a result, they received a significant reduction in fines. The other companies involved acknowledged the violation later in the process and cooperated in a streamlined settlement of the case, which also earned them a reduction in fines.

“Companies that divide the market deprive their customers of the benefits of competition,” said Martijn Snoep, chairman of ACM. “It is good that this agreement has come to an end and that the companies wanted to come clean by actively cooperating in the investigation and recognizing the violation,” he added.

Companies involved in illegal agreements have the option to come forward and apply for leniency by reporting these activities to the ACM. The first company to report such involvement can completely avoid a fine. Other companies within the same cartel that report and cooperate later are also eligible for a reduced fine, promoting a culture of compliance and cooperation.