The European Commission has imposed fines totalling 10.1 MECU on four shipowners (armateurs) for anti-competitive practices on behalf of the CEWAL shipping conference (Associated Central West Africa Lines). The Compagnie Maritime Belge (CMB) has been fined 9.6 MECU, while the remainder has been imposed on Woermann Linie, Dafra Line (both currently owned by CMB) and Nedlloyd. CMB has a period of four years within which to pay the fine. In determining the size of the fines, the Commission took account of the minor role played by Woermann, Dafra and Nedlloyd, and their small market share, compared to the CMB. The fines also aim to reflect certain mitigating circumstances which came to the Commission's attention. Following complaints from the Danish Government and from several shipowners, the Commission opened proceedings against 11 Shipowners' Committees and 4 Liner Conferences (CEWAL, MEWAC, COWAC and UKWAL). Regarding the Committees, the Commission imposed a heavy fine last April for violating the EC Treaty (Articles 85 and 86) on traffic between France and 11 West and Central African countries. Today's decision, the first against a maritime conference, primarily concerns CEWAL, which groups together several shipping companies in order to provide a regular shipping service between Western European ports and the ports of Zaire and Angola. The decision only applies to traffic between Northern European ports (except the UK) and Zaire. The Commission has found that on these routes the members of CEWAL abused their dominant market position, in breach of Article 86, in three different ways in order to eliminate competition from their chief competitor, G&C (a common service between the Belgian shipowner Cobelfret and the Italian shipowner Grimaldi):- 1: They participated in a cooperation agreement with the Zairean maritime authorities (Ogefrem: l'Office Zairois de Gestion de Fret Maritime) under which all cargo on this line would be carried by CEWAL members. 2: They used the "fighting ships" method. If a competitor offered cheaper rates than those set by CEWAL, the conference would hold a meeting to undercut that competitor, and ensure that CEWAL members scheduled their sailings at or around the same time as those of the competitor in order to win over its customers. Charges equivalent to the losses incurred by the competitor would then be shared out among CEWAL members. 3: CEWAL imposed 100% loyalty rebates, under which members would have to surrender all their cargo to the Conference in order to qualify for a rebate. Black lists would be drawn up with the names of shippers who broke the 100% rebate system. This went beyond the terms of the rules
