Fish farmers facing huge fines – if guilty

The six Norwegian salmon companies accused by the EU of price fixing could collectively face fines totalling NOK 13 billion, almost a billion pounds sterling, it has emerged.

The EU Commission says they broke competition rules by sharing information on prices and other matters.

Potentially, the fines could total 10% of their global annual turnover at the time which is thought to be around NOK 13 billion.

However, industry observers point out that the EU has seldom imposed cartel fines as high as 10% and much will depend on how seriously they view any offences, should the companies be found guilty.

They have all strongly denied the accusations and said they will contest the allegations.

Law professor Erling Hjelmeng told the national broadcaster NRK yesterday it is more common to have a fine levied at 2% or 3% of turnover.

But there is no question of the companies not paying if found guilty. Together Norwegian seafood sales to the EU totalled NOK 76 billion (around £6bn) last year with salmon by far the largest earner.

Margrethe Vestager, EU Competition Commissioner

The EU Competition Commissioner Margrethe Vestager said competition was vital if consumers were to buy food at reasonable prices.

She added: “We are concerned that six salmon producers exchanged commercially sensitive information with the aim of limiting competition on the market, to the detriment of European customers.

“The companies concerned now have the opportunity to respond to our concerns.”

Five of the accused companies are listed on the Oslo Stock Exchange and their shares fell heavily after yesterday’s announcement.