**Judgment of the Court of First Instance (Second Chamber) of 12 September 2007 – Prym and Prym Consumer v Commission**

**(Case T-30/05)**

Competition – Cartels – European haberdashery market (needles) – Product market sharing – Geographic market sharing – Fine – Guidelines on the method of setting fines – Duty to state reasons – Gravity and duration of the infringement – Leniency notice

1.                     *Competition – Fines – Amount – Limit – Application to each fine individually in the case of distinct infringements (Council
Regulation No 1/2003, Art. 23(2)) (see paras 63-64)*

2.                     *Community law – Principles – Protection of legitimate expectations – Conditions (Internal Rules of the Commission, Art. 1)
(see para. 67)*

3.                     *Competition – Administrative procedure – Decision finding an infringement – Obligation to define the market in question –
Scope (Art. 81 EC) (see paras 86-88)*

4.                     *Competition – Fines – Amount – Determination – Measure of the actual capacity to cause significant damage to competition on
the market concerned (Art. 81(1) EC; Council Regulation No 17, Art. 15(2)) (see para. 90)*

5.                     *Acts of the institutions – Statement of reasons – Obligation – Scope (Art. 253 EC) (see para. 92)*

6.                     *Competition – Agreements, decisions and concerted practices – Agreements between undertakings – Effect on trade between Member
States – Criteria – Market not significantly affected – Agreement not prohibited (Art. 81(1) EC) (see paras 102-103, 140)*

7.                     *Competition – Fines – Amount – Determination – Criteria – Seriousness of the infringement (Art. 81(1) EC; Council Regulation
No 17, Art. 15(2); Commission Notice 98/C 9/03, point 5(b)) (see paras 108, 110, 191)*

8.                     *Competition – Fines – Amount – Determination – Criteria – Duration of the infringement (Art. 81(1) EC; Council Regulation
No 17, Art. 15(2)) (see paras 127-128, 133)*

9.                     *Competition – Community rules – Infringement committed by a wholly owned subsidiary – Imputed by presumption to the parent
company (Art. 81 EC) (see para. 146)*

10.                     *Competition – Fines – Amount – Determination – Power of assessment conferred on the Commission by Article 23 of Regulation
No 1/2003 (Council Regulation No 1/2003, Art. 23) (see paras 153-156)*

11.                     *Community law – Principles – Non-retroactivity of penal provisions – Scope – Fines imposed for breach of the competition rules
– Included (Council Regulation No 1/2003, Art. 23; Commission Notice 98/C 9/03) (see paras 164-168)*

12.                     *Competition – Fines – Amount – Determination – Criteria – Seriousness and duration of the infringement (Council Regulation
No 1/2003, Art. 17, Arts 15(2) and 23; Commission Notice 98/C 9/03, point 1 A, para. 6 ) (see paras 180-182, 238, 240-241)*

13.                     *Competition – Fines – Amount – Determination – Criteria – Seriousness of the infringement – Attenuating circumstances (Council
Regulation No 17, Art. 15(2); Commission Notice 98/C 9/03, point 3) (see paras 204-205, 207-208, 211)*

14.                     *Competition – Fines – Amount – Determination – Commission’s margin of discretion – Limits – Compliance with the proportionality
principle (Council Regulation No 1/2003, Art. 23(2)) (see paras 223-224, 226)*

15.                     *Competition – Fines – Amount – Determination – Criteria – Obligation to take account of the financial situation of the undertaking
concerned (Council Regulation No 17, Art. 15(2)) (see para. 230)*

16.                     *Competition – Fines – Amount – Determination – Criteria – Attitude of the undertaking during the administrative procedure
(Council Regulation No 17, Art. 15(2); Commission Notice 96/C 207/04, Title D, point 2) (see paras 251-252)*

**Re:**

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| | APPLICATION, principally, for annulment of Commission Decision C(2004) 4221 final of 26 October 2004 relating to a proceeding under Article 81 [EC] (Case COMP/F-1/38.338 – PO/Needles) in so far as it relates to the applicants, and, in the alternative, for annulment or reduction of the fine imposed on the applicants. |

**Operative part**

The Court:

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| 1. | | Sets the amount of the fine imposed on William Prym GmbH & Co. KG and Prym Consumer GmbH & Co. KG under Article 2 of Commission Decision C(2004) 4221 final of 26 October 2004 relating to a proceeding under Article 81 [EC] (Case COMP/F-1/38.338 – PO/Needles) at EUR 27 million; |

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| --- | --- | --- |
| 2. | | Dismisses the remainder of the appeal; |

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| --- | --- | --- |
| 3. | | Orders William Prym and Prym Consumer to bear 90% of their own costs and to pay 90% of the costs incurred by the Commission, and the Commission to bear 10% of its own costs and to pay 10% of the costs incurred by William Prym and Prym Consumer. |