German sausage-makers have been fined a total of approximately €338 million for fixing the price of sausages.
According to the Bundeskartellamt, the federal cartel office of Germany, which imposed the fines, 21 manufacturers and 33 individuals have been part of a cartel that has fixed the price of sausages over several decades.
The office received an anonymous tip-off and began investigating the matter. The office says that sausage manufacturers informed each other about demands for price increases and that price ranges were agreed for product groups, such as cooked sausages and ham, rather than for individual items, due to the numerous types of sausages.
Eleven of the companies admitted wrongdoing and cooperated with the investigation in return for smaller fines. However, zur Mühlen Gruppe, the country's biggest producer, has denied the allegations and has said that it plans to contest the fines.
Andreas Mundt, president of the Bundeskartellamt said, "The overall amount of fines seems high at first glance, but has to be seen in perspective, in view of the large number of companies involved, the duration of the cartel, and the billions in turnover achieved in this market."
This is the latest in a long line of German price-fixing scandals, which have also included sugar producers and brewers. The office has handed out more than €900 million in fines this year, compared to €240 million last year.
The fine will be divided between the 33 individuals and 21 producers who now have two weeks to appeal to the Düsseldorf Higher Regional Court before the fines become final.
© 2014 European Supermarket Magazine by Nicole Gernon
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