The Court of First Instance has rejected an appeal by haberdashery producers Prym and Coats. It has however reduced the financial penalties imposed on the companies by the European Commission. In 2004 the companies were found to have participated in a cartel in the needles and other haberdashery products market. Two sets of bilateral agreements, linked by inter-conditional clauses, were found to have created a tripartite agreement by which the parties were able to divide the market. The cartel which was in place for over five years was implemented through meetings and a compensation scheme. In its ruling the CFI confirmed the existence of the cartel, but reduced the overall fine from euro 60 million to euro 47 million.