Germany fines propane companies for price fixing
Bonn, Germany - German authorities fined two propane companies a total of 41.4 million euros (55 million dollars) Wednesday for price-fixing, saying they colluded to stop customers obtaining cheaper prices.
Westfalen AG and Propan Rheingas GmbH & Co KG supply two thirds of the German market for liquefied petroleum gas (LPG), the Federal Cartel Office in Bonn said. From 1997 until a raid in 2005, they had had a pact not to poach one another's customers.
In 2007 and 2008, the Cartel Office fined nine other LPG companies a total of 209 million euros on related charges. Some have appealed.
Investigators believe the companies avoided quoting prices to customers seeking to change supplier, or offered exorbitant prices to deliberately put them off.
Westfalen has rejected the charges, saying it was not part of the cartel. It said Wednesday it would challenge the ruling in court.
The industry delivers gas by truck to tanks set up outside homes and factories, and also sells gas in canisters. (dpa)