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Our Business Principles require us to compete ethically, fairly and in line with applicable competition laws. In 2006, we were painfully reminded of cases in the past where employees did not live by our Principles and we have intensified our efforts to ensure they do so in the future (see below).
Competition laws
In June 2006, Shell Italia and Shell Aviation were fined more than €56 million by the Italian Competition Agency for allegedly exchanging information through airport joint ventures. These fines were reduced later in the year to a total of €37.64 million. In October 2006 in Argentina, we were accused of market sharing in Liquefied Petroleum Gas and fined approximately $83,000. We are appealing these cases.
In 2006, we were fined €108 million for participating in a cartel in the Dutch bitumen market. The European Commission (EC) found that Shell and 13 other companies fixed prices from the mid 1990s until early 2002. The employee involved retired from Shell before the investigation began.
The EC also fined us €161 million last year for participating in a synthetic rubber cartel between 1996 and 1999. We sold the business involved in 1999. The EC investigation began in 2003.
As the head of our downstream business, Rob Routs, emphasised to all his 73,000 staff last year after the bitumen and rubber cartel decisions were announced: “Infringement of competition law will not be tolerated in Shell. My position on this is unequivocal. If you engage in illegal discussions with competitors, you will face disciplinary action up to and including dismissal”.
Since the mid-1990s, we have run an extensive training programme to help employees follow competition laws and are working hard to strengthen the culture of compliance. Obeying competition laws is an essential part of our new Code of Conduct. Our Global Antitrust Compliance Programme has been strengthened. Anyone in contact with competitors, suppliers or business customers is required to take training.