Competition and trade law: Commission decision upheld by CFI - Dutch crane hire

United Kingdom

Commission decision upheld by CFI

The Court of First Instance (CFI) has upheld a Commission Decision fining FNK, a Dutch association of crane hire firms, for applying a system of recommended and internal rates which allowed the members to predict each other's pricing policy. But the CFI reduced the fine on SCK, a Dutch organisation established by crane hire firms and their customers, which had set up a certification system relating to the use and maintenance of cranes.

FNK and SCK claimed that the Commission had infringed Article 6 of the European Convention on Human Rights by failing to reach a final decision within a reasonable time (the investigation took in total 46 months). As a result, the Commission had infringed the principle of legal certainty and legitimate expectation. Further, the Commission did not act on their requests for an oral hearing and so infringed another principle of natural justice. The applicants also alleged that they had suffered damage because the Commission's investigation into the position of FNK and SCK meant their reputation was being adversely affected. For all these reasons, the applicants asked for the Commission's Decision to be annulled.

The CFI rejected all the pleas. In particular, the Commission's delays during the procedure were not unreasonable. But the CFI did agree that the fine on SCK was disproportionate because it exceeded the previous year's turnover.