The General Court of the European Union today upheld the European Commission’s finding that Credit Suisse participated in an anticompetitive agreement in the foreign exchange (FOREX) spot trading market but substantially reduced the fine originally imposed on the bank. The penalty was cut from €83.2 million to €28.9 million due to a miscalculation by the Commission in determining the bank’s sales proxy for the purpose of setting the fine.
The case stems from a broader Commission investigation into the spot trading of G10 currencies, which uncovered collusive behaviour among traders employed by several major banks. Between 2011 and 2012, traders from Credit Suisse, Barclays, HSBC, the Royal Bank of Scotland (RBS), and UBS exchanged commercially sensitive information in a professional chatroom known as “Sterling Lads.” These discussions enabled them to coordinate trading strategies, reduce market uncertainty, and distort competition.
In 2019, the Commission concluded the case for four of the banks—Barclays, HSBC, RBS, and UBS—via a settlement procedure, granting UBS full immunity from fines due to its cooperation. Credit Suisse, which chose not to cooperate, was fined separately through a standard infringement decision.
Following UBS’s acquisition of Credit Suisse, three entities—UBS Group AG, UBS AG, and Credit Suisse Securities (Europe) Ltd—challenged the Commission’s decision before the General Court. The applicants sought full annulment of the decision or, alternatively, a reduction in the fine.
The General Court dismissed the arguments disputing Credit Suisse’s participation in the infringement. It held that the Commission had rightly concluded that the bank was involved in the unlawful coordination and information exchange.
However, the Court found in favour of the applicants on one crucial procedural point. It ruled that the Commission failed to use the best available data when calculating the proxy for Credit Suisse’s value of sales, which is a key input in determining the basic amount of the fine. During the administrative procedure, Credit Suisse had submitted alternative figures it considered more complete and reliable, but the Commission chose to rely on its own estimates. The Court found this approach inconsistent with the Commission’s own 2006 Guidelines on the method of setting fines, which require reliance on the most accurate data available.
As a result, the Court partially annulled the Commission’s decision and recalculated the fine, reducing it to €28.9 million.
Today’s judgment reaffirms the Commission’s findings on the substance of cartel conduct in the FOREX market, while reinforcing the importance of procedural rigour in the calculation of sanctions. The decision also underscores that undertakings choosing not to cooperate with EU cartel investigations can still challenge procedural flaws in the fine-setting process.
The Commission may appeal the General Court’s decision to the Court of Justice of the European Union within two months.
