SEVEN chemicals companies were fined almost €400 million (£274 million) yesterday after the European Commission found them guilty of operating an illegal cartel that pushed up prices for consumers in Britain and across the Continent.

The penalty is the third- highest that the Brussels regulator has slapped on companies for breaking the European Union’s antitrust rules.

Neelie Kroes, the Competition Commissioner, said: “These high fines take into account that certain companies are repeat offenders. Directors and shareholders alike should ask why these practices were allowed to continue.”

A Commission spokesman added: “British and other housewives have been paying more for their washing powder because these companies were involved in price-fixing practices.”

The companies, none of them British, operated a cartel in the hydrogen peroxide and perborate markets. Hydrogen peroxide is an oxidising agent used for bleaching paper and textiles and for disinfection and environmental applications such as sewage treatment. Perborate is a common substance in synthetic detergents and washing powders.

After a series of dawn raids three years ago, the Commission uncovered the records of a meeting held in early 1995 in which the competitors discussed “a model for sharing out among producers”.

At a subsequent gathering in 1997, the group examined the implementation of price rises agreed earlier and scheduled further increases.

The companies involved were: Degussa, of Germany; Solvay, of Belgium; Total/Elf Aquitaine/Arkema, of France; Akzo Nobel, of the Netherlands; FMC Corporation/Foret, of the United States and Spain; Kemira, of Finland; Edison, of Italy; and Snia/Caffaro, of Italy.

Details of the exchanges of information between the companies first began to emerge three years ago. They included production limits, allocated market shares and customers, and fixed and target prices. In 2002, Degussa approached the Commission offering to provide information in exchange for immunity. The move enabled the company to avoid a potential €130 million penalty.

The heaviest individual penalty fell on Solvay, which was fined €167 million, followed by Total/Elf Aquitaine/Arkema with €78 million. Fines on the other five members ranged from €1 million to €58 million. The ninth company involved, L’Air Liquide, avoided any punishment since it had left the market in 1998.

Solvay described the fine as “excessive” and said that it would consider an appeal.

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