Record EU fine for Norwegian company

The European commission has imposed a hefty fine on Norway’s Tomra after it found the group guilty of abusing its dominant market position.

The company, which makes so-called “reverse vending machines” that allow customers to exchange empty cans and bottles for a small deposit, operates in several EU countries including Germany and Austria.

Brussels claims that by signing exclusivity agreements and quantity commitments, and offering discounts for loyal companies, Tomra effectively blocked the market entry of rival players between 1998 and 2002.

The company was fined €24m, or seven per cent of its global turnover, the biggest fine ever imposed by the Brussels executive in terms of a proportion of sales.

EU competition rules allow the commission to fine companies up to 10 per cent of their global sales, but most fines are far smaller.

A spokesman for competition commissioner Neelie Kroes said that the size of the fine should be taken as a clear indication that the commission “will not tolerate companies that abuse their market dominance and exclude other companies from the market”.

Tomra said it had already responded to the commission’s objections and was now fully in compliance with EU rules. It has yet to decide whether to appeal the decision.

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