The European Commission (EC) has fined a cartel of glassmakers, including Britain's Pilkington Group, €486.9 million (£348.4 million) for co-ordinating price increases for flat glass deliveries across Europe in 2004 and 2005.

The Commission said four companies — Pilkington, France's Saint-Gobain, Asahi Glass of Japan and America's Guardian — had organised several rounds of price increases, fixed minimum prices and other commercial conditions to try to raise and stabilise prices.

Guardian has been fined €148 million, the largest penalty of the four, followed by Pilkington, which has been fined €140 million while Saint-Gobain will pay €133.9 million and Asahi €65 million.

The Commission's investigation into a suspected cartel among car glass manufacturers, which includes Saint-Gobain, Asahi Glass and Pilkington owner Nippon Sheet Glass, continues.

The companies can appeal against the fines at the European Court of Justice, while the people affected by the cartel can seek damages.

The EC began surprise inspections on the companies in early 2005 after receiving information from national competition regulators.

During the inspections, Asahi and its Belgian subsidiary Glaverbel applied for leniency after they co-operated with the Commission and provided additional evidence.

Inspectors found evidence that representatives of the companies met in restaurants and hotels around Europe to discuss the level and timing of price increases, target prices and minimum prices and exchanged sensitive commercial information.

The fines cover the European flat glass market, used in doors, windows and mirrors, in which the four companies collectively hold an 80 per cent market share.

Neelie Kroes, the EU competition commissioner, said: "The Commission will not tolerate companies cheating consumers and business customers by fixing prices and depriving them of the benefits of the single market."

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