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CARTEL

In hot water: authorities in Bonn smash potato packers’ cartel

Competition authorities pounded two German potato packing firms on Thursday with a massive fine for secretly agreeing prices for their sacks of spuds.

In hot water: authorities in Bonn smash potato packers' cartel
Photo: DPA

Officials at the Kartellamt in Bonn squeezed €13.2 million ($15.8 million) from two businesses, Böhmer and Kuhn, which collaborated to fix prices for potatoes and onions in their contracts with retail group Metro.

The figures the firms cooked up meant that “price competition between the two main suppliers of the Metro group was effectively eliminated,” competition watchdog chief Andreas Mundt said in a statement.

Authorities only sniffed out the unsavoury scheme when another firm in the sector reported the collusion in exchange for leniency.

Germany's food sector is no stranger to scandal, as sausage makers and brewers alike have suffered fines after being caught collaborating to skim off extra profits in recent years.

Supervisors have also fined truckmakers who hitched their prices together in a cartel of their own.

SEE ALSO: Bangers and cash – sausage makers fight 'cartel' fine in Düsseldorf court

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PUNISHMENT

Norwegian prime minister fined for Covid-19 rules breach

Erna Solberg has been fined 20,000 kroner for her role in planning a dinner party at a restaurant in Geilo, southern Norway, in February.

Norwegian prime minister fined for Covid-19 rules breach
Instagram erna_solberg

The South East police district has finished its investigation into the episode and concluded that there was a breach of national infection control rules.

The Prime Minister broke infection control measures when 13 family members were gathered at the restaurant in Geilo, a popular skiing destination. At the time, only 10 people could gather in such settings.

“I take note of the police decision. I have previously said that if the restaurant visit is followed up with fines, then we will of course make up for it. I apologise for what happened and will pay the fine,” Solberg said in a statement .

Despite not being present at the meal, due to having an eye checkup in Oslo, Solberg is considered to be one of the event’s organisers as she participated in the decision to host the dinner and was involved in choosing a restaurant.

Despite police saying his role would also fall under that of an organiser, the prime minister’s husband, Sindre Finnes, will not be fined.

“The practical arrangements were made by Solberg’s husband, but Solberg was involved in the decision to eat out,” police chief Ole B. Sæverud said at a press conference.

The police said that such a case would not normally lead to punishment, unless special considerations dictate it.

They believe that this case meets the special considerations criteria as finding Solberg guilty without any punishment could have a negative impact on the population’s compliance with coronavirus restrictions.

“Even though the law is equal for everyone, not everyone is equal. Solberg is the country’s foremost elected official and has on a number of occasions fronted the government’s decisions on measures to counter the pandemic. It is therefore considered appropriate to react with punishment, in order to maintain the public’s trust in the infection control rules,” Sæverud said.

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The restaurant Solberg’s family ate at, Hallingstuene, will not receive a fine.

“If we had come across the incident while it was taking place, we would have clarified the regulations and, if necessary, given orders to end the event. A punitive response would only be considered if the event was carried out in a clearly contagious manner, or there was a case of repeated violation,” said Sæverud.

The prime minister’s family met twice over a weekend in late February as part of her 60th birthday celebrations in Geilo. On the Saturday there were more than 10 people present at an apartment they had rented. However, as the regulations were unclear at the time police said that this was not a criminal violation.

Solberg apologised for the breach when it was first reported in March.

“I, who every single day stand and speak about infection control to the Norwegian people, should have known the rules better. But the truth is that I have not checked the rules well enough, and thus not realiisd that when a family goes out together and there are more than ten persons, it is actually an event,” she said at the time.  

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