European Court cuts JCB fine

JCB have won a £6.25 million reduction in a £25 million fine after the European Court of First Instance in Luxembourg quashed several charges of anti-competitive trading made against the firm by the European Commission.

The Court called for the penalty – which was imposed in 2000 – to be reduced by 25% following an appeal by the company against five charges of alleged anti-competitive behaviour. JCB had argued that the restrictions central to the allegations were the lawful implementation of a dealer agreement which was notified and approved by the EC in 1975/76 and re-notified in 1980 and again 1995.

In upholding the appeal, the Court quashed three of the five charges against JCB and also ordered the EC to pay 25% of the firm’s appeal costs. JCB say they are now considering whether to launch an appeal to the European Court of Justice on the remaining charges.

JCB chief executive, John Patterson, said: ‘Although the judgement vindicates JCB’s decision to appeal, we are naturally disappointed that the court did not uphold the appeal in its entirety.

‘We will now be examining the Court’s judgement in detail before deciding whether an appeal will be lodged.’