HSBC has lost its legal challenge against a €31.7m fine imposed by the European Commission (EC) for its involvement in a cartel to manipulate the Euro Interbank Offered Rate (Euribor).
Euribor interest rates is a benchmark used for financial products, including interest rate swaps, futures, savings accounts, and mortgages.
The ruling was delivered by the General Court of the European Union (EU), which dismissed HSBC’s arguments and upheld the fine.
The General Court stated: “Competition in the field of Euro Interest Rate Derivatives: the General Court confirms the Commission’s amended decision against HSBC. The revised fine of €31 739 000 is upheld.”
The EC, acting as the EU’s antitrust watchdog, initially imposed a €33.6m fine on HSBC in 2016 for colluding with JPMorgan Chase and Crédit Agricole to participate in a single and continuous infringement that stifled competition in the Euro Interest Rate Derivatives (EIRD) sector.
In 2019, the General Court annulled the original fine, citing insufficient reasoning from the Commission. The Commission subsequently revised the penalty in 2021, reducing it to €31.74m while reaffirming its findings of anti-competitive behaviour.
The same year, HSBC argued that the revised fine was imposed outside the prescribed limitation period and sought its annulment or a reduction in the amount.
The General Court rejected these claims, stating that the limitation period had been suspended while the Commission’s appeal was pending before the Court of Justice of the European Union (CJEU).
The case stems from the Commission’s broader investigation into the Euribor cartel, which involved seven banks colluding to manipulate interest rates between 2005 and 2008 to increase profit or reduce risk.
Deutsche Bank, RBS, and Société Générale admitted wrongdoing in exchange for reduced fines, while Barclays avoided a penalty by acting as a whistleblower.
HSBC retains the option to appeal the General Court’s decision to the Court of Justice of the EU.
