Pilkington, the British glass manufacturer, was handed a €140 million (£100 million) fine by the European Commission yesterday for forming an illegal cartel with three competitors three years ago.

As part of its get-tough policy on companies that ignore European Union antitrust rules, the European Commission imposed is fifth-highest cartel fine of €486.9 million on the quartet of rule-breakers: Asahi, of Japan; Guardian, of the United States; Saint-Gobain, of France; and Pilkington.

Neelie Kroes, the 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.”

The Commission, working closely with national competition authorities, launched a series of raids on the companies’ premises in February and March 2005. These uncovered evidence that representatives from the four firms had met several times in hotels and restaurants in different European countries to exchange sensitive commercial information.

During the meetings, the participants discussed and agreed the level and timing of price increases and considered commercial conditions in order to increase or stabilise prices.

The cartel, which operated between early 2004 and early 2005, was centred on flat glass used in the building industry. The main customers for the products are processors, which turn the glass into finished products such as double-glazed windows, fire-resistant glass and mirrors for use in large buildings and private homes. The four companies held 80 per cent of Europe’s flat glass market in 2004 and enjoyed sales of €1.7 billion.

When announcing the penalties, the Commission emphasised that any individual or company that had been affected by the illegal behaviour could seek damages before national courts.

The cartel lasted little longer than a year, but the size of the fine was driven by tougher guidelines ensuring that penalties reflect the overall economic significance of the illegal activity. “This will be the new policy,” Ms Kroes said. “It is right that the punishment in this case is severe in order to achieve a sufficient deterrent effect and it is a great pity that the Commission’s many previous cartel decisions did not deter the companies from forming the cartel.”

Pilkington, which became the British unit of Nippon Sheet Glass, of Japan, last year, was unavailable for comment. The British company and Saint-Gobain are also under investigation for allegedly participating in another cartel involving car glass.

A spokesman for the French firm said that it “took note” of the decision and had set aside €650 million for the fine and any possible penalty in the car glass case. Guardian was fined €148 million and the Belgian-based Glaverbel, now a unit of Asahi Glass and which had cooperated with the Commission in the investigation, €65 million.

Separately, Qantas, the Australian airline, apologised yesterday for its involvement in an international price-fixing scam and agreed to pay a $61 million (£29.5 million) fine imposed by the US Justice Department. Geoff Dixon, the company’s chief executive, said: “The conduct was wrong and we apologise unreservedly for this. Qantas takes its obligations to comply with the law very seriously.”

According to the charges, between June 2000 and February 2006 Qantas had engaged in a conspiracy to eliminate competition by fixing the rates for shipments of cargo to and from the United States and elsewhere.

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