Brussels - The European Commission on Wednesday imposed an unprecedented 1.38-billion-euro (1.76-billion-dollar) combined fine on four car glass manufacturers found guilty of forging a cartel designed to keep prices artificially high.

An investigation concluded that managers of Asahi of Japan, Britain's Pilkington, Saint-Gobain of France and Belgium's Soliver had taken part in a series of illegal talks in a number of European airports and hotels between 1998 and 2003. The meetings were used to fix prices and market share and to allocate customers to each other.

These companies together control 90 per cent of the European's 2- billion-euro market for glass components used in cars.

The EU executive increased the fine on Saint-Gobain by 60 per cent to 896 million euros after it was found to be a repeat offender.

Asahi, by contrast, benefited from a 50 per cent reduction for acting as a whistle-blower.

The fines are the highest ever imposed by the commission in such cartel cases.

"These companies cheated the car industry and car buyers for five years in a market worth 2 billion euros in the last year of the cartel," said European Competition Commissioner Neelie Kroes.

"Management and shareholders of companies that damage consumers and European industry by running cartels must learn their lessons the hard way - if you cheat, you will get a heavy fine," the commissioner said.

Saint-Gobain, which was handed the biggest cartel fine ever imposed by Brussels on a single company, said it would appeal the decision to the European courts in Luxembourg.

The company's main complaint was directed at the penalty's "disproportionate" size, noting that the 896-million-euro fine was equivalent to 95 per cent of the annual turnover of its Original Equipment Manufacturer business and to "dozens of years" of net profit.

The proceeds of such fines are paid into the EU budget. (dpa)