Sign in Subscribe
European Union

European Airfreight Market Cartel Ruling by Luxembourg General Court

Strategic Insights

— 1 min read

The Luxembourg General Court (First Chamber) handed down a significant ruling on December 16, 2015, in the case T-46/11, Deutsche Lufthansa AG and Others v European Commission. This judgment relates to a proceeding under Article 101 TFEU, Article 53 of the EEA Agreement, and Article 8 of the Agreement between the European Community and Switzerland on Air Transport.

Key Takeaways:

  • The applicants, Deutsche Lufthansa AG and its subsidiaries, Lufthansa Cargo AG and Swiss International Air Lines AG, were found to have infringed Article 101 TFEU, Article 53 of the EEA Agreement, and Article 8 of the Swiss Agreement.
  • The General Court upheld the European Commission's decision to impose no fines on the applicants.
  • The General Court found that the applicants had coordinated their behavior regarding the pricing of airfreight services, including the imposition of fuel and security surcharges.
  • The applicants had allegedly participated in a cartel from December 14, 1999, to December 7, 2005, relating to routes within the EEA.
  • The applicants had also allegedly participated in a cartel from May 1, 2004, to December 7, 2005, relating to routes between the European Union and airports outside the EEA.
  • The applicants had allegedly participated in a cartel from May 19, 2005, to December 7, 2005, relating to routes between Contracting Parties of the EEA Agreement but not Member States and third countries.
  • The General Court found that the contested decision was valid and that the applicants had been informed of the objections against them.
  • The General Court also found that the applicants had not been entitled to be heard in the formal investigation procedure, as their request had been lodged too late.

Statistics:

  • 21 carriers were addressed in the contested decision.
  • The cartel allegedly operated from December 14, 1999, to December 7, 2005.
  • The European Commission imposed no fines on the applicants.
  • 27 carriers were originally served with a statement of objections.
  • The applicants responded to the statement of objections, and an oral hearing was held from June 30 to July 4, 2008.

Sources:

  • Court of Justice of the European Union (General Court): Judgment of 16 December 2015, Case T-46/11
  • European Commission: Decision C(2010) 7694 final of 9 November 2010 (Case COMP/39258 -- Airfreight)

Read more