Luxembourg, March 26, 2025 – The General Court of the European Union has largely upheld the European Commission’s 2021 decision regarding a cartel in the European Government Bonds (EGB) market, while reducing fines for Nomura and UniCredit. The ruling confirms that six major investment banks participated in anti-competitive practices that distorted the EGB market between 2007 and 2011.
Background on the Case
In May 2021, the European Commission determined that traders from seven major banks—UBS, Natixis, UniCredit, Nomura, Bank of America, Portigon (formerly WestLB), and NatWest (formerly Royal Bank of Scotland)—had engaged in collusion within the EGB sector. This involved the exchange of sensitive information and coordination on bond issuance, placement, and trading activities, affecting the market across the European Economic Area (EEA).
As a result, the Commission imposed fines totaling €371 million on Nomura, UBS, and UniCredit. However, Bank of America and Natixis were not fined due to the expiration of the time limit for imposing penalties. NatWest was also exempt, having disclosed the cartel’s existence to regulators. Portigon’s fine was effectively reduced to zero, as its financial situation rendered it unable to pay.
General Court’s Ruling
Following appeals by six of the seven banks (all except NatWest), the General Court upheld the European Commission’s findings of cartel activity but adjusted the fines for two banks:
- Nomura: Originally fined €129.57 million, its penalty was reduced to €125.65 million after the Court found that the Commission erred in its assessment of the bank’s data.
- UniCredit: Initially fined €69.44 million, the penalty was lowered to €65 million after the Court determined that the bank’s involvement in the cartel began 17 days later than the Commission had originally claimed.
Meanwhile, UBS, which had been fined €172.38 million, saw its appeal dismissed, and its penalty remained unchanged.
Confirmation of Anti-Competitive Conduct
The General Court reinforced the severity of the cartel’s actions, affirming that the exchange of commercially sensitive information, price-fixing, market-sharing, and customer allocation on both the primary and secondary EGB markets were particularly damaging to fair competition. The Court ruled that the European Commission was not required to demonstrate the specific market impact of these practices, as the nature of the collusion itself was inherently harmful.
Moreover, the judgment reaffirmed that banks are fully liable for their employees’ anti-competitive behavior. The decision also justified naming Bank of America and Natixis in the ruling, despite their lack of fines, as their inclusion helped clarify the extent and structure of the cartel.
Next Steps
The banks have the option to appeal this decision before the Court of Justice of the European Union, but such an appeal would be limited to points of law. They must file any appeal within two months and ten days of the ruling’s notification.
Source: https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-03/cp250039en.pdf
