The European judges have dismissed appeals from Credit Agricole and Credit Suisse against a 2021 Commission decision that found their exchange of sensitive information between traders to be an anticompetitive cartel in the secondary trading market. The European Commission had fined Credit Agricole and Credit Suisse (now UBS) for colluding on price fixing of dollar-denominated bonds. This final victory for competition commissioner Margrethe Vestager comes as she prepares to step down, with Teresa Ribera set to replace her. Traders from Bank of America, Deutsche Bank, Credit Agricole, and Credit Suisse colluded between 2010 and 2015 to fix the prices of dollar-denominated bonds through online chatrooms, resulting in fines being imposed on the banks.
Deutsche Bank, which cooperated in the investigation, was granted immunity, while the other three banks were fined by the Commission. Credit Agricole and Credit Suisse appealed the decision, claiming that there was not enough evidence of an infringement of EU antitrust rules and that their traders’ behavior did not constitute part of an overall plan to pursue an anticompetitive objective. However, the General Court upheld the Commission’s decision, finding that it was right to condemn the conduct of the four banks and made no errors in assessing the economic context and impact of the cartel. The collusion took place in the secondary trading market of Suprasovereign Sovereign and Agency bonds denominated in US Dollars in the European Economic Area.
Traders from the four banks, who knew each other personally, were found to frequently exchange sensitive information through chatrooms on Bloomberg terminals or by phone. This allowed them to provide updates on their trading activities and coordinate on the prices shown to their customers and the market. Credit Agricole has taken note of the Court’s decision and is carefully considering the judgment of the EU General Court to determine whether to appeal. UBS, which is the rebranded entity of Credit Suisse, declined to comment on the ruling when contacted by Euronews.
The General Court’s ruling upholding the Commission’s decision marks a significant win for the EU competition enforcer in cracking down on anticompetitive behavior in the financial sector. The fines imposed on Credit Agricole and Credit Suisse, along with the immunity granted to Deutsche Bank for cooperation, serve as a warning to other financial institutions about the consequences of engaging in price-fixing activities. This case highlights the importance of maintaining fair competition in the market and the role of regulatory authorities in enforcing antitrust rules to prevent collusion and ensure a level playing field for all participants in the financial sector. Margrethe Vestager’s legacy as competition commissioner includes holding major banks accountable for anticompetitive behavior and sending a strong message that such actions will not be tolerated in the EU.
