EU Airfreight Market Cartel Ruling: KLM Fined €2.72 million

In a recent judgment, the Court of Justice of the European Union's General Court ruled on a long-standing case regarding alleged cartel activities in the European airfreight market. Koninklijke Luchtvaart Maatschappij NV (KLM) was one of the airlines implicated in the case. The Court found that the airlines had infringed Article 101 TFEU and imposed a fine of €2,720,000 on KLM.

Key Takeaways:

• KLM was found to have participated in a cartel in the European airfreight market from 1999 to 2006, specifically concerning the fuel surcharge, security surcharge, and refusal to pay commission on surcharges.
• The cartel was found to have had a negative impact on competition in the market, with the airlines coordinating their behavior to charge higher prices for airfreight services.
• The Court imposed a fine of €2,720,000 on KLM for its participation in the cartel.
• The fine was calculated based on the airline's total turnover in the relevant market during the period of the infringement.
• KLM was also required to bring an end to the infringement and to refrain from repeating any acts or conduct described in the judgment.

Statistics:

• The cartel lasted for approximately 7 years, from 1999 to 2006.
• The fine imposed on KLM represents approximately 0.07% of the airline's total turnover in the relevant market during the period of the infringement.
• The total number of airlines implicated in the cartel was 21, including KLM.

Sources:

• Judgment of the General Court (First Chamber) of 16 December 2015, Case T-28/11, Koninklijke Luchtvaart Maatschappij NV v European Commission.