The European Commission has imposed fines totalling €16.7 million on six French federations in the beef sector.

The federations are being fined for having taken part in an agreement to set a minimum price for some categories of beef and to suspend or, at the very least, limit imports of all types of beef into France.

"The competition rules also apply to agriculture, as this decision makes clear. Nevertheless, the Commission has taken account of the difficult context facing the beef sector, which had been shaken by successive crises. As far as the slaughterers are concerned, it has also taken account of the fact that they were acting under pressure and the threat of violence from farmers," Mario Monti, the Commission Member with special responsibility for competition, stated.

The action stems from actions taken in October 2001, when six French federations entered into an agreement in the beef sector. Four of the federations represented farmers and the two others slaughterers. Under the agreement, the federations jointly set a minimum price.

According to the EC, agreements on prices and restrictions of imports are among the most serious infringements of competition law.

The fines imposed on the trade bodies concerned demonstrate clearly that agriculture is bound by the competition rules, the EC said. Although the EU rules and regulations in this sector provide for a number of exceptions to the competition rules, the agreement in question is not covered by any of the exceptions.

This is the first time that the Commission has imposed fines on farmers' unions. The Commission said that it recognised the importance of trade union freedom, but added that it is not the job of trade unions to assist in the conclusion and implementation of agreements that disregard the rules governing law and order and, more specifically, the competition rules.

The federations have three months in which to pay the fines, which are entered into the general budget of the European Union once they have become definitive. The overall EU budget is fixed in advance and so any unscheduled revenues are deducted from the contributions made by Member States to the EU budget, ultimately to the benefit of the European taxpayer, the EC stated.