Judgment of the Court of First Instance (Second Chamber) of 12 September 2007 - Prym and Prym Consumer v Commission (Case T-30/05) Competition - Cartels - European haberdashery market (needles) - Product market sharing - Geographic market sharing - Fine - Guidelines on the method of setting fines - Duty to state reasons - Gravity and duration of the infringement - Leniency notice 1. Competition - Fines - Amount - Limit - Application to each fine individually in the case of distinct infringements (Council Regulation No 1/2003, Art. 23(2)) (see paras 63-64) 2. Community law - Principles - Protection of legitimate expectations - Conditions (Internal Rules of the Commission, Art. 1) (see para. 67) 3. Competition - Administrative procedure - Decision finding an infringement - Obligation to define the market in question - Scope (Art. 81 EC) (see paras 86-88) 4. Competition - Fines - Amount - Determination - Measure of the actual capacity to cause significant damage to competition on the market concerned (Art. 81(1) EC; Council Regulation No 17, Art. 15(2)) (see para. 90) 5. Acts of the institutions - Statement of reasons - Obligation - Scope (Art. 253 EC) (see para. 92) 6. Competition - Agreements, decisions and concerted practices - Agreements between undertakings - Effect on trade between Member States - Criteria - Market not significantly affected - Agreement not prohibited (Art. 81(1) EC) (see paras 102-103, 140) 7. Competition - Fines - Amount - Determination - Criteria - Seriousness of the infringement (Art. 81(1) EC; Council Regulation No 17, Art. 15(2); Commission Notice 98/C 9/03, point 5(b)) (see paras 108, 110, 191) 8. Competition - Fines - Amount - Determination - Criteria - Duration of the infringement (Art. 81(1) EC; Council Regulation No 17, Art. 15(2)) (see paras 127-128, 133) 9. Competition - Community rules - Infringement committed by a wholly owned subsidiary - Imputed by presumption to the parent company (Art. 81 EC) (see para. 146) 10. Competition - Fines - Amount - Determination - Power of assessment conferred on the Commission by Article 23 of Regulation No 1/2003 (Council Regulation No 1/2003, Art. 23) (see paras 153-156) 11. Community law - Principles - Non-retroactivity of penal provisions - Scope - Fines imposed for breach of the competition rules - Included (Council Regulation No 1/2003, Art. 23; Commission Notice 98/C 9/03) (see paras 164-168) 12. Competition - Fines - Amount - Determination - Criteria - Seriousness and duration of the infringement (Council Regulation No 1/2003, Art. 17, Arts 15(2) and 23; Commission Notice 98/C 9/03, point 1 A, para. 6 ) (see paras 180-182, 238, 240-241) 13. Competition - Fines - Amount - Determination - Criteria - Seriousness of the infringement - Attenuating circumstances (Council Regulation No 17, Art. 15(2); Commission Notice 98/C 9/03, point 3) (see paras 204-205, 207-208, 211) 14. Competition - Fines - Amount - Determination - Commission's margin of discretion - Limits - Compliance with the proportionality principle (Council Regulation No 1/2003, Art. 23(2)) (see paras 223-224, 226) 15. Competition - Fines - Amount - Determination - Criteria - Obligation to take account of the financial situation of the undertaking concerned (Council Regulation No 17, Art. 15(2)) (see para. 230) 16. Competition - Fines - Amount - Determination - Criteria - Attitude of the undertaking during the administrative procedure (Council Regulation No 17, Art. 15(2); Commission Notice 96/C 207/04, Title D, point 2) (see paras 251-252) Re: APPLICATION, principally, for annulment of Commission Decision C(2004) 4221 final of 26 October 2004 relating to a proceeding under Article 81 [EC] (Case COMP/F-1/38.338 - PO/Needles) in so far as it relates to the applicants, and, in the alternative, for annulment or reduction of the fine imposed on the applicants. Operative part The Court: 1. Sets the amount of the fine imposed on William Prym GmbH & Co. KG and Prym Consumer GmbH & Co. KG under Article 2 of Commission Decision C(2004) 4221 final of 26 October 2004 relating to a proceeding under Article 81 [EC] (Case COMP/F-1/38.338 - PO/Needles) at EUR 27 million; 2. Dismisses the remainder of the appeal; 3. Orders William Prym and Prym Consumer to bear 90% of their own costs and to pay 90% of the costs incurred by the Commission, and the Commission to bear 10% of its own costs and to pay 10% of the costs incurred by William Prym and Prym Consumer.