Numerous searches
EU suspects price fixing among tire manufacturers
January 30, 2024, 7:21 p.m
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The EU Commission fears illegal price fixing for new replacement tires. The companies concerned would have allegedly violated antitrust law. There are also searches at the German manufacturer Continental. If the suspicion is confirmed, there will be high penalties.
The EU competition authorities have searched several car tire manufacturers on suspicion of illegal price fixing. “The commission fears that price fixing took place between the companies under investigation,” the authority said. The authority did not comment on the companies affected.
Searches were carried out at the German manufacturer Continental, among others, as the company announced. “We can confirm that investigations by European antitrust authorities have been taking place at Continental in Germany since today,” said a company spokesman. Pirelli announced that it would cooperate fully with the EU Commission. A spokesman added that the Italian tire company had behaved fairly.
Michelin also confirmed the searches. A spokesman emphasized that the French company always adheres to the competition rules that apply in the respective countries. The tire manufacturers Goodyear and Nokian also confirmed corresponding studies. Other large companies such as Bridgestone, Michelin and Pirelli did not respond.
The EU Commission says it suspects illegal price fixing for new replacement tires for cars, trucks, vans and buses. The companies allegedly violated European antitrust law. Businesses in the European Economic Area are affected, which includes the 27 EU countries as well as Iceland, Liechtenstein and Norway.
The share prices of tire manufacturers fell immediately after the announcement from Brussels. The Continental share price lost 3.2 percent on the Frankfurt Stock Exchange, and the value of Michelin shares in Paris lost around 1.4 percent. The unannounced searches are the first step for possible proceedings under EU antitrust law. If the suspicion of illegal price fixing is confirmed, the companies face high penalties. However, they can mitigate the fines if they cooperate with the authorities.