(BRUSSELS) - The European Commission fined a group of chemicals companies 79 million euros (122 million dollars) on Wednesday for running an illegal cartel in the market for bleaching paper and pulp.

The EU antitrust watchdog accused EKA Chemicals, Akzo Nobel, Finnish Chemicals, Erikem Luxembourg, Arkema France, Elf Aquitaine, Aragonesas Industrias y Energia and Uralita of operating a cartel between 1994 and 2000.

However, Akzo Nobel and its subsidiary Eka Chemicals were spared fines because they were the first to offer up information on the cartel, which fixed prices and carved up markets at a series of illegal meetings.

Finnish Chemicals fine was reduced by half because it cooperated with investigators while Arkema France saw its fine increase by 90 percent to 59 million euros because it participated in three previous cartels.

"These companies have to learn the hard way that the commission will impose high fines when they rip off their customers, and ultimately consumers, by forming a cartel," EU Competition Commissioner Neelie Kroes said.

"Arkema's shareholders and management should be asking some pertinent questions, as the company's fine has been increased by 90 percent because it had participated in three cartels before this one," she added.

"Companies fines' will keep increasing for repeat offences."

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.