Overview

The financial crisis has not too surprisingly increased the number of applications claiming inability to pay (ITP) the fines imposed by the European Commission (Commission). Firms reeling from the effects of the downturn in the market find it difficult to pay for breaches of EU competition law.

Condemning cartels engaged in by some of the bathroom equipment manufacturers and prestressing steel producers, the Commission adopted fines but allowed some of the ITP applications by granting reductions in fines.

However the difficulty involved in satisfying the criteria for upholding such claims of ITP and the high fines imposed are a reminder to companies that cutting corners is not an option even during a financial crisis.

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