The news comes after raids by European Commission investigators on a number of major paper producers in Europe, in relation to alleged cartels and price fixing agreements.

The fines were imposed on companies and individuals after the Bundeskartellamt uncovered a total of 10 regional cartels involving multiple memberships. The agreements in place in the cartels related to the prices for carbonless, offset and printing papers between May 1995 and April 2000. The sales volume involved amounted to approximately 668m.

Bundeskartellamt president Ulf Bge said the agreements had enabled the companies involved to raise prices to a level they could not have reached through effective competition.

"The agreements not only harmed printers as direct customers, but also their customers and end consumers," he said.

Bge added that following searches carried out in April 2000, a number of small competitors had co-operated with inquiries. He said: "I find the lack of a sense of wrongdoing among most of the companies alarming."

Bge also pointed out that a number of companies had already been fined a total of 1.16m in 1993 for the same offences. "Obviously these fines were too low," he said.

The fined companies were: Classen Papier, Deutsche Papier, Drissler & Co, E Michaelis, Freytag & Petersen, Hansa-Papier, Igepa Papier, Papier Union, Schneider & Shne and Vereinigte Papier.

Story by Andy Scott