Antitrust: Commission re-adopts decision and fines air cargo carriers €776 million for price-fixing cartel
Brussels, 17 March 2017- The European Commission has re-adopted a cartel decision against 11 air cargo carriers and imposed a fine totalling € 776 465 000 for operating a price–fixing cartel. The Commission’s original decision was annulled by the General Court on procedural grounds.
Commissioner Margrethe Vestager, in charge of competition policy, said: “Millions of businesses depend on air cargo services, which carry more than 20% of all EU imports and nearly 30% of EU exports. Working together in a cartel rather than competing to offer better services to customers does not fly with the Commission. Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behaviour.”
In November 2010, the Commission imposed fines of nearly €800 million on 11 air cargo carriers who participated in a price-fixing cartel, from December 1999 to February 2006, in the airfreight services market covering flights from, to and within the European Economic Area. The cartel arrangements consisted of numerous contacts between airlines, at both bilateral and multilateral level to fix the level of fuel and security surcharges.
The companies fined in 2010 were Air Canada, Air France-KLM, British Airways, Cargolux, Cathay Pacific Airways, Japan Airlines, LAN Chile, Martinair, Qantas, SAS and Singapore Airlines. A 12th cartel member, Lufthansa, and its subsidiary, Swiss International Air Lines, received full immunity from fines.
All but one of the companies (Qantas) subject to the 2010 decision challenged the decision before the EU’s General Court. In December 2015, the General Court annulled the Commission’s decision against the 11 cartel participants that appealed, concluding that there had been a procedural error. However, it did not rule on the existence of the cartel.
The Commission maintains that these air cargo carriers participated in a price-fixing cartel and is adopting a new decision and re-establishing the fines. This new decision addresses the procedural error identified by the General Court while remaining identical in terms of the anticompetitive behaviours targeted by the Commission. The decision confirms that the Commission will not let cartels go unpunished. Cartels are illegal and cause consumers and business to suffer.
The fines
The fines were set on the basis of the Commission’s 2006 Guidelines on fines (see also MEMO). They were fixed at exactly the same level as in the 2010 Decision for all the companies, except for Martinair. In the 2010 decision, Martinair’s fine had been capped at 10% of the company’s total turnover in 2009. EU rules allow a maximum fine of 10% of the total turnover in the year preceding the adoption of the decision. Martinair’s turnover is significantly lower in 2016 than in 2009. As a result, Martinair’s fine has been lowered to reflect this.
In the 2010 decision, Lufthansa, and its subsidiary Swiss International Air Lines, received full immunity under the Commission’s 2006 Leniency Notice, as it brought the cartel to the Commission’s attention and provided valuable information. Furthermore, the fines for the majority of carriers were also reduced for their cooperation with the Commission under the Leniency Notice.
The individual fines are as follows:
Fine (€)*
Reduction under the Leniency Notice
Air Canada
21 037 500
15%
Air France
182 920 000
20%
KLM
127 160 000
20%
Martinair
15 400 000
50%
British Airways
104 040 000
10%
Cargolux
79 900 000
15%
Cathay Pacific Airways
57 120 000
20%
Japan Airlines
35 700 000
25%
LAN Chile
8 220 000
20%
SAS
70 167 500
15%
Singapore Airlines
74 800 000
Lufthansa
0
100%
Swiss International Air Lines
0
100%
(*) Legal entities within the undertaking may be held jointly and severally liable for the whole or part of the fine imposed.
Prime Minister Mark Rutte visiting Israel in 2013 to launch bilateral cooperation forums.
Diplomat Magazine would like to warmly congratulate Primer Minister Mark Rutte for his overwhelming victory at yesterday’s election in the Netherlands.
Mark Rutte Chief of the Liberal-Conservative Government of the Netherlands, clearly won the elections after four years of economic recuperation in a more fragmented, populist and Eurosceptic scenario than ever. The result of his election is an inspiration for supporters of a prosperous and tolerant Europe.
Rutte (The Hague, 1967) was prime minister for the first time in October 2010, elected after the failure of the coalition between Liberals and Christian Democrats trying to approve an austerity budget in the midst of the economic crisis.
Always considered a soft, simple, affable, modest man and firm politician; insistent to carry out his political projects, Rutte already made history by being the first Prime Minister of liberal governments in the Netherlands since the founding of his People’s Party for Freedom and Democracy (VVD), in 1948. His serenity and ability to negotiate, his conciliatory attitude and good humour, have served him to weather difficult times, especially when he has been racked by his austere policies in the Netherlands and inside the EU as one of the main obstacles for Greece to received his first financial bailout.
One minute of silence has been observed by t Prime Minister Mark Rutte on Wednesday march 23 front of the Embassy of the Kingdom of Belgium in The Hague.
Since then, he led a minority right-wing coalition, whose power of legislation depended on the support of the Freedom Party (PVV), led by populist and anti-Islamist Geert Wilders. Rutte’s government managed to approve an austere budget with the support of five parties – Liberal, Democrat, Democrats 66, Greens and Christian Union – but failed after Wilders’ refusal to back a series of spending cuts.
He was re-elected prime minister after the elections of October 2012, this time after a narrow victory in the general elections, which allowed him to lead a center-left coalition, with the support of the Labor Party.
Rutte, a former staff manager of the Dutch multinational Unilever (1992-1997) and his subsidiary Calvé (1997-2000), revived in the 2012 campaign the VVD, of which he remains leader and candidate for re-election as Prime Minister. In this last term has counted on 41 seats, of a total of 150, being the VVD the majority party in the Dutch Parliament. Since his arrival in power, Rutte has had to impose large spending cuts, which have cost him a barrage of criticism for the austerity measures demanded by Brussels.
Crises overcome
Rutte had to assert all his diplomatic skills to overcome a crisis between The Hague and Moscow, for the arrest and detention of a Russian diplomat by the police in The Hague following by the assault of the Dutch Deputy Head of Mission’s house in Moscow. Four centuries of diplomatic and commercial contacts were over for weeks them re-established.
Another crisis he managed on July 17, 2014, was caused by the crash of a plane of Malaysian Airlines going from Amsterdam to Kuala – Lumpur; flight MH17 with 298 passengers on board, of which 196 were Dutch and the rest mostly from Malaysia and other countries. The plane crashed in eastern Ukraine predictably reached by land- Air fired by pro-separatists.
The European Union (EU) association agreement with Ukraine, was rejected by 60% of the Dutch in a referendum held in April 2016.
Admired by countless, Rutte has been seen on his bicycle in the morning from his house to the Parliament, in The Hague, promoting the protection of the environment and giving an example of an austere politician in times of crisis. Rutte, who lives with her mother, combined his career at the University of Leiden with the leadership of the liberal movement. Son of a family of merchants, few details are known about his private life, beyond that he is single, pianist in his spare time, Professor of Politics and member of the Protestant Church of Holland.
Diplomat Magazine look forward to continuing our excellent working relations.
Duo Karolina Janu (soprano) and Justyna Jarzab (piano).By Roy Lie A Tjam.
The Embassy of the Czech Republic in collaboration with the Czech Centre in The Hague hosted an evening of romantic songs at the residence of H.E. Ms. Jana Reinisová, Ambassador of the Czech Republic to the Netherlands on 7 March 2017.
A highlight of the evening was the piano – soprano duo Karolina Janu (Czech, soprano) and Justyna Jarzab (Poland, piano). Both artists are holders of master degrees in their respective domains, obtained in Prague and Krakow respectively. Justyna currently works in Delft and Scheveningen. The ladies met some years ago while studying in Rotterdam.
Soprano Karolina Janu.
A select group of ambassadors, diplomats, and members of the Czech community in the Netherlands enjoyed the evening, which featured classics including Chopin Mazurka op 24, bo,1.2, Martino 4 songs on Moravian folk poetry H.288 and L. Janacek: Zdravas Maria/Hail Mary H6252.
A reception concluded the event.
By Roy Lie A Tjam.The launching of the International Trade Diplomacy Business Club (ITDBC) took place at the Malietoren The Hague on 9 March 2017.The welcome remarks were delivered by Ms. Marion Verboom, the organisation’s first executive director. According to Verboom, the ITDBC is a new platform for trade diplomacy. She told attendees the second meeting will be in June 2017 and a visit will be organized to an agro farm.Mr. Hans de Boer, Chairman of VNO NCW MKB Nederland, then delivered an inaugural address. According to Mr. de Boer, the ITDBC has the potential to be a wonderful initiative, and has been a missing link in the Dutch international trade scene.An address was then delivered by Mr. Tjerk Opmeer, Deputy Director International Enterprise Department (DIO) at the Ministry of Foreign Affairs. Mr Opmeer encouraged the audience to make good use of what ITDBC has to offer. He noted that the Dutch Minister for Foreign Trade and Development Cooperation Ms. Lilianne Plumen has recently signed an agreement with MKB for the promotion of external trade.The International Trade Diplomacy Business Club is a network for doing business in The Netherlands. It enables trade diplomats to meet on a regular and informal basis, to share their experiences with fellow trade diplomats, acquire practical skills for international business and expand their knowledge of trade matters. Briefings will be organized on international trade issues and visits to relevant companies and institutions for doing business in The Netherlands. Many turn out to attend the launching ceremony. The program included a session of speed meeting with trade diplomats, and an interactive discussion on the outcome of the questionnaire by Suzanne van Tilburg, Senior Strategy Manager at Rabobank. An informal networking reception concluded the afternoon.
ICC President meets with UN Secretary-General António Guterres in New York
Yesterday, 15 March 2017, the President of the International Criminal Court (“ICC” or “the Court”), Judge Silvia Fernández de Gurmendi, met with the Secretary-General of the United Nations (UN), Mr António Guterres at the UN headquarters in New York. It was their first meeting since Mr Guterres was appointed as Secretary-General.
During the meeting, President Fernández expressed the Court’s appreciation for the UN’s strong and principled support: “I want to thank you for the statements of support which you have made about the ICC and for the UN’s continuing cooperation on an operational level, which is essential to the effectiveness of the Court’s work.”
Mr Guterres highlighted that two of the UN’s main goals, those of peace and justice, are directly linked to the work of the Court. He stated “both the Court and the United Nations strive to maintain international peace and security and to ensure that the rule of law prevails”.
The two discussed key challenges faced by the ICC and responses to these, including recent efforts aimed at improving the efficiency of the Court. The Secretary-General and President Fernández agreed on the need for continued dialogue with States which have raised concerns as to the Court’s functioning. Practical matters to ensure continued cooperation in the field and UN support of ICC activities were also raised.
The meeting was part of the ICC President’s mission to New York where she is meeting with senior UN officials and briefing the New York Working Group of the Assembly of States Parties to the Rome Statute on current developments at the Court. She also spoke at a seminar on international humanitarian law for diplomats accredited to the United Nations, organized by the International Committee of the Red Cross (ICRC) and the New York University School of Law.
While the International Criminal Court is not a part of the United Nations, the two organisations cooperate with each other in accordance with a Relationship Agreement signed in 2004.
On Thursday afternoon 16 March, the Embassy of Hungary presented the short documentary ‘The Hungarian Revolution of 1956 – 60 years later, The 1956 Commemoration Season in the Netherlands’ to dozens of special invitees in The Hague. The documentary was made by the Netherlands based Hungarian filmmaker Csaba Bogádi and reflects upon eleven events that were organized throughout the Netherlands from August to November 2016 and attended by over 7000 visitors.
Like the short documentary, the aim of the extensive program organized by the Embassy of Hungary in collaboration with various partners, was to commemorate the Hungarian Revolution of 1956 and transfer the knowledge and experiences of this historic event to younger generations. In the documentary, four key figures of the 1956 Commemoration Season reflect upon the four concerts, three conferences, two exhibitions and the national commemoration ceremony that took place in the fall of 2016.
The presentation on 16 March 2017 was attended by partners who made the 1956 Commemoration Season possible. The Embassy of Hungary also invited the Dutch athletes who could not participate in the 1956 Olympic Games in Melbourne. It was boycotted by the Netherlands in solidarity with the Hungarian people. The Dutch athletes previously took part in a program specially organized for them in Budapest, together with the Swiss and Spanish athletes who did not go to Melbourne in 1956.
In the autumn of 2016, it was exactly 60 years ago that the 1956 Hungarian Revolution and Freedom Fight was brutally crushed down by the Soviet Union. With the theme “new heroes are born where they are not forgotten”, the Hungarian government established a memorial board that funded the worldwide commemoration of the Revolution in 2016.
The programs in which the Embassy of Hungary in the Netherlands was involved, were made possible by the 1956 Hungarian Revolution and Freedom Fight 60th Anniversary Memorial Board.
Judge Theodor Meron, President of the Mechanism for International Criminal Tribunals.Arusha, The Hague, 16 March 2017- The President of the Mechanism for International Criminal Tribunals (Mechanism or MICT), Judge TheodorMeron, on Thursday, 9 March 2017 notified the United Nations Security Council (UNSC) of the failure of the Republic of Turkey to comply with its obligations to cooperate with the Mechanism and to comply without undue delay with a judicial order issued by the Mechanism.
On 31 January 2017, Judge Meron, acting as Pre-Review Judge in the case of The Prosecutor v. Augustin Ngirabatware, ordered Turkey to cease all legal proceedings against Judge Aydin Sefa Akay and to take all necessary measures to ensure Judge Akay’s release from detention, no later than 14 February 2017, so that he could resume his judicial functions in the Ngirabatware case. That order was binding on Turkey under UNSC resolution 1966 (2010), which requires that all States comply with orders issued by the Mechanism.
In a Decision issued on 6 March 2017, Judge Meron, observed that there was no information before him that the domestic legal proceedings in Turkey against Judge Akay had ceased, that he had been released from detention since the issuance of the Mechanism’s Order of 31 January 2017, or that such actions might otherwise be imminent.
Judge Meron concluded that Turkey’s non-compliance with the Order of 31 January 2017 materially impeded the Appeals Chamber’s consideration of the merits of the Ngirabatware case and threatened the independence of the Mechanism’s judiciary. Judge Meron further determined that, pursuant to the Mechanism’s Rules of Procedure and Evidence, the matter should be reported to the UN Security Council.
Judge Akay, a member of the Appeals Chamber Bench in the Ngirabatware case, was detained in Turkey, on or around 21 September 2016, in relation to allegations connected with the events of July 2016 directed against the constitutional order of Turkey. He has remained in detention since that time. In accordance with the Mechanism’s Statute the judges of the Mechanism enjoy privileges and immunities accorded to diplomatic envoys under international law when engaged on the business of the Mechanism, even while exercising their functions in their home country. The UN Secretary-General has formally asserted the diplomatic immunity of Judge Akay to the Turkish authorities and requested Judge Akay’s immediate release and the cessation of all legal proceedings against him.
Augustin Ngirabatware, the former Rwandan Minister of Planning, was sentenced to 30 years of imprisonment for committing direct and public incitement to commit genocide and instigating and aiding and abetting genocide. On 8 July 2016, Ngirabatware filed a request for review of his convictions on the basis of new facts that he claims exonerate him. With Judge Akay’s continued detention, the proceedings on the merits of the case remain at a standstill.
One of NABC’s meetings.
For the first time a Dutch trade mission traveled to Niger. Four Dutch companies will visit the country this week, led by the Netherlands-African Business Council (NABC).
The French Niger is one of the world’s poorest countries. Yet there from the Netherlands begins to emerge a commercial interest, which results in this trade mission. The mission is led by Marina Diboma, NABC’s head of international cooperation. Diboma declared: “Someone asked me what to look for Dutch businesses in Niger. My answer was simple: Development can only take place through cooperation and exchanges. Because this development is lagging behind we see many possibilities. Netherlands can stand here.” Diboma stresses the importance of creating jobs for young people in Niger, which is the main transit country for African migrants coming to Europe.
This mission works closely with the Dutch Embassy in Mali, which is also responsible for Niger. Ambassador Jolke Oppewal is taking part in the trade mission, also this week he will present credentials to the Nigerien Government in Niamey.
One of the participants, Peter Fishermen ‘Partners for Innovation’, a consulting firm that has been working in Niger said “When I came here two years ago, I saw opportunities everywhere”. “ What has struck me that there is a great need for good products, services and consultants who can help the country in setting up projects and managing them. From the Netherlands, we can deliver this”. Explained another participant, Big Dredging interested in the dredging of the River Niger.
The trade mission to Niger is part of a four-year program that performs NABC commissioned by the Dutch Embassy in Mali. It is aimed at promoting trade relations between the Netherlands and Mali, Niger and Burkina Faso. Participating companies are: Partners for Innovation, Boode Blue Pump, BIG Machinery / BIG Dredging and Greenshields & Partners.
The President of Kyrgyzstan and The King of the Belgians.
Brussels, 16 February 2017: IV President of the Kyrgyz Republic, Almazbek Sharshenovich Atambayev, arrived to Brussels. During his working visit, the Kyrgyz President held bilateral meetings with HM King Philippus of the Belgians as well as multilateral talks with the chairmen of the European Council Donald Tusk, the European Commission Jean-Claude Juncker and the European Union High Representative for Foreign Affairs and Security Policy, Federica Mogherini.
During the visit, two documents were signed to enhance cooperation between Kyrgyzstan and European Union on key fields. Under the rule of law programme, €30 million will be provided for the modernisation of the Kyrgyz legislative process. This is one more tranche. Earlier, the European Union has already allocated €9.5 million to strengthen the rule of law in Kyrgyzstan and another €30 million — in the framework of macro-financial assistance.
About €72 million are planned for agriculture programmes. The monies will be spent on the development of seven regions of the country within 7 years. The first tranche is aimed for Jalal-Abad region.
President of the Kyrgyz Republic, Almazbek Sharshenovich Atambayev and the European Union High Representative for Foreign Affairs and Security Policy, Federica Mogherini.
Concerning relations to Belgium, trade turnover between the countries is growing. According to the Ministry of Economy, for the first 9 months of 2016 it amounted to $ 16,342 million. Exports amounted to $ 8,489 million, import — $ 7,853 million. Kyrgyzstan exports to Belgium gold, antimony and its compounds, automobile parts, non-ferrous metals, radiators, products from ferrous metals. Belgium supplies to Kyrgyzstan industrial equipment, mechanical devices, equipment and components, vehicles, pharmaceutical, perfumery and cosmetic products, food products, lubricants, paper, cardboard and products made of it.
The sides also do not forget about cultural development. In 2016, cinemas in Belgium screened a documentary ‘A man and a horse’ about a journey to Kyrgyzstan by a French film director Robinot. As a further display of cultural exchanges President Atambayev and Foreign Minister Erlan Abdyldaev donated the archives of Kyrgyz artist and first ambassador to Belgium and the then European Communities, Chyngyz Aitmatov, to Belgium. Archival materials were handed over to the country by the honorary professor of the Free University of Brussels, a member of the Royal Academy of Archeology of Belgium Jean Blancoff. Chyngyz Aitmatov was a prolific writer in Kyrgyz and Russian languages.
For further information:
President of the Kyrgyz Republic, HE President Almazbek Sharshenovich Atambayev: http://eng.president.kg
Missions of Kyrgyzstan to the EU, the OPCW and the Benelux countries, HE Ambassador Asein Isaev: https://www.facebook.com/KyrgyzEmbassyInBrussels/?fref=ts
Chinghiz Aitmatov: https://en.wikipedia.org/wiki/Chinghiz_Aitmatov
European Union High Representative/Vice-President Federica Mogherini. Pictured by EU.Strasbourg, 14 March 2017- The High Representative of the Union for Foreign Affairs and Security Policy and the European Commission have adopted a Joint Communication proposing a EU strategy for Syria.
As called for by President Jean-Claude Juncker in his State of the Union speech in September 2016, the Communication defines how the European Union can play a stronger role in contributing to a lasting political solution in Syria under the existing UN-agreed framework. It also looks at how the EU can continue its assistance to over 13 million people in need in Syria, help build resilience and stability in the country, and support post-agreement reconstruction and the voluntary, dignified and safe return of refugees and internally displaced persons once a credible political transition is underway.
The High Representative/Vice-President Federica Mogherini said: “The Joint Communication adopted today strengthens not only our current engagement and support for a political solution to the war as the only way we can bring peace back to Syria, but also what the European Union could do in a post-agreement context in which reconstruction can start. And there is much the European Union is ready to do, together with the United Nations and the rest of the international community. The Syrians want peace, they deserve it, as they want and deserve to finally have the possibility to shape the future of their country. We are at their side to support the future of Syria.”
As outlined in the Joint Communication, the European Union’s engagement in Syria goes beyond the current state of play. It is defined by a longer term perspective in support of the EU’s strategic goals on Syria. A stable, strong and secure Syria will be rebuilt provided that a political settlement in line with UN Security Council Resolution 2254 and the Geneva Communiqué is reached.
The Joint Communication comes at a crucial moment for Syria, as we mark the 6th year of the conflict and with the resumption of the UN-led talks in Geneva, supported by a ceasefire mechanism established as a result of the Astana talks. The Communication reiterates the European Union’s direct support for the UN process, notably through ongoing political dialogue with regional actors under the EU regional initiative on the future of Syria and ongoing work to strengthen both the Syrian political opposition and civil society organisations.
The European Union will continue to be the first and leading donor in the international response to one of the worst humanitarian crises since World War II. Since the outbreak of the conflict, the EU has mobilised over €9.4 billion, providing life-saving humanitarian assistance and resilience support to the Syrian people and neighbouring countries hosting Syrian refugees.
The Joint Communication presents the current political, security and humanitarian context in Syria and the state of play of the EU’s assistance in response to the Syria crisis. It contains an assessment of the risks and threats posed by the continuation of the war to the EU’s core interests, regional and global stability, as well as the definition of a set of clear objectives for the EU’s policy for Syria, which include:
Ending the war through a political transition process negotiated by the parties to the conflict with the support of the UN Special Envoy for Syria and key international and regional actors;
Promoting a meaningful and inclusive transition in Syria through support for the strengthening of the political opposition, in line with UN Security Council Resolution 2254 and the Geneva Communiqué;
Promoting democracy, human rights and the freedom of speech by strengthening Syrian civil society organisations;
Promoting a national reconciliation process based on peace-building efforts and countering violent extremism and sectarianism, including an approach to transitional justice that should include accountability for war crimes;
Saving lives by addressing the humanitarian needs of the most vulnerable Syrians in a timely, effective, efficient and principled manner;
Supporting the resilience of the Syrian population, as well as of the institutions and Syrian society.
As a next step, the Communication proposes clear lines of action to implement these objectives, in close coordination with regional partners and international organisations, and to continue the diplomatic work and post-agreement planning in order to ensure that international support is ready, coordinated and can be delivered effectively when the appropriate moment comes.
High Representative/Vice-President Mogherini will present the Joint Communication to EU Foreign Ministers at the Foreign Affairs Council on 3 April; it will also be presented to the European Parliament. The Communication will also serve as an important input for the Brussels Conference “Supporting the Future of Syria and the Region” on 5 April 2017 that the EU will co-chair with the UN, Germany, Kuwait, Norway, Qatar and the United Kingdom.
A highlight of the evening was the piano – soprano duo Karolina Janu (Czech, soprano) and Justyna Jarzab (Poland, piano). Both artists are holders of master degrees in their respective domains, obtained in Prague and Krakow respectively. Justyna currently works in Delft and Scheveningen. The ladies met some years ago while studying in Rotterdam.
A reception concluded the event. 
