Looks like bad news is on the way:-BRUSSELS (AFP) - The European...

Looks like bad news is on the way:-

BRUSSELS (AFP) - The European Commission on Wednesday hit a group of zip and other fastener makers with a fine of 328.6 million euros (458 million dollars) for running an illegal cartel.

The European Union's competition watchdog accused six companies and a German trade group of fixing price hikes together, setting price floors, sharing customers, carving up markets and exchanging sensitive information.

"It is unacceptable that the major fastening technology producers colluded for such a long time to maintain artificial price levels and to share customers and markets," Competition Commissioner Neelie Kroes said.

The fines targeted companies YKK, Prym, Coats, Scovill, A. Raymond, Berning und Soehne and German trade association Fachverband Verbindungs- und Befestigungtechnik.

In addition to zips, the companies also make such fasteners as rivets and snap buttons for clothing and footwear as well as machines for attaching them, Commission spokesman Jonathan Todd said.

The Commission handed the biggest fine to Japanese group YKK, ordering the company, which has about 50 percent of the world fastener market, to pay 150 million euros.

Coats was fined 122 million euros and Prym 40.5 million euros while the other companies received much smaller penalties.

The fines would have even been higher for YKK, Prym and Coats, had they not sought to cooperate with regulators after the Commission carried out surprise inspections at haberdashery makers.

The Commission was particularly disappointed that the illegal activity had lasted so long -- 21 years in one case -- and that top management, including managing and sales directors and board members, were involved.

Kroes is in the midst of a "no-tolerance" crackdown on cartels and has lodged ever-rising record fines against those she snares, often in low-profile industries where clients pay little attention to suppliers' prices.