Good Articles to Share

Michelin challenges EU’s hunt for evidence of 'tyre cartel'

Tan KW
Publish date: Wed, 17 Apr 2024, 10:40 PM
Tan KW
0 429,483
Good.

Michelin is challenging the legality of European Union (EU) antitrust raids on its facilities, as regulators swept across the tyre industry for evidence of a suspected price-fixing cartel.

The French firm was targeted by so-called surprise inspections in January - alongside rivals including Bridgestone Corp, Continental AG, and Goodyear Tire & Rubber Co - as part of one of the biggest EU probes in years.

Cie Generale des Etablissements Michelin has now filed an appeal to the EU’s General Court in Luxembourg over the European Commission’s decision, according to people familiar with the matter, who spoke on condition of anonymity.

If it eventually wins its challenge, judges could void potential evidence gleaned during the inspections on the Clermont Ferrand, France-based firm - frustrating efforts by regulators to build their case.

Neither Michelin nor the commission in Brussels immediately responded to a request for comment.

EU regulators said in January they were concerned “that price coordination took place among the inspected companies, including via public communications”. Michelin responded to the move by saying that it “scrupulously” follows EU competition rules.

Antitrust watchdogs are ramping up their dawn raids after the Covid-19 crisis brought them to a standstill. The EU’s investigation into the tyre industry came after similar evidence-gathering at premises of construction chemicals firms and food delivery services. 

Such inspections are a preliminary step. The EU may start formal proceedings if evidence shows the companies broke the bloc’s antitrust rules, which could eventually lead to fines of as much as 10% of global revenue. 

 


  - Bloomberg

 

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment