Bayer: Addicted to cartels
German-based Bayer AG, the #2 European chemical company and the #14 pharmaceutical company in the world has been at the nexus of an increasing number of cartels. The areas have mostly been in various forms of synthetic rubber in over-the-counter drugs, and they have happened across the world.
To give an example of what these cartels involve, one US indictment for price fixing charged executives from Bayer and other companies with:
- Participating in meetings among major rubber chemical producers to discuss the prices of rubber chemicals to be sold in the United States and elsewhere;
- Agreeing, during those discussions and meetings, to increase prices of rubber chemicals to be sold in the United States and elsewhere.
A EU charge held that the conspirators "a) agreed prices to be charged for products in an indirect way by agreeing 'target' prices and 'roll-over' prices, b) shared customers by using 'non- aggression' agreements, and exchanged sensitive commercial information relating to prices, competitors, and customers." ("Synthetic rubber cartel - fessing up pays off for Bayer," www.openbrief.com, 1/23/08)
Here a short list of fines Bayer has paid over the last few years:
2001: Bayer subsidiary fined by the EU for participating in a citric acid cartel 14 million euros (that followed a $50 million US fine in 1997)
2004: Bayer paid $66 million to settle a criminal charge in the U.S>for being part of a global conspiracy to fix the prices of ingredients used in making synthetic rubber.
2005: In Brazil, Bayer along with a number of other drug companies, were fined for forming a cartel to fight against generic drugs and spread disinformation about them.
2005; Portugal found Bayer guilty of fixing prices in collaboration with four other drug companies (including Johnson & Johnson and Abbott) for Portuguese hospitals.
2006: Bayer, along with Unipetrol, Shell, Dow Chemical and others, was fined by the EU for price-fixing in synthetic rubber.
2007: Canada fines Bayer over $3 million for cartels in rubber chemicals and in aliphatic polyester polyols, used for polyurethane.
2008: Bayer was involved in another cartel, for NBR (nitrine butadiene rubber), a commonly used synthetic rubber. It got off without a fine in the US by informing on other members of the cartel,
2008: the EU fined Bayer 29 million euros for the same cartel (along with rival Zeon) in the specialized area of NBR.
2008: 16 companies including Cooper Tire & Rubber announced a lawsuit against Bayer, Unipetrol, Royal Dutch Shell and others alleging a European rubber cartel.
2008: Bayer was fines over 10 million euros for conspiring with German pharmacies to set minimum prices for its over-the-counter drugs, including aspirin.
Also pending are accusations of cartels for pesticides in India, and for over the-counter drugs in Europe generally.
Do we seem to have a pattern here? Part of a corporate culture? Cartels are notoriously difficult to uncover and prosecute, so one can only imagine what others were smoothly executed so as not to leave traces.
If you are interested in a whole litany of other Bayer issues, check the website of the Coalition against Bayer Dangers at www.CBGnetwork.org
