The European Commission objected to several construction-chemical makers and trade bodies in France, Germany and Spain over suspected price coordination.
The case covers cement additives and concrete and mortar admixtures, used to improve manufacturing efficiency and performance.
Companies can reply and seek hearings; confirmed breaches may draw fines of up to 10 per cent of worldwide turnover.
The sending of a Statement of Objections does not prejudge the outcome of an investigation.
The Commission has preliminary concerns that between 2021 and 2022 the manufacturers coordinated future price increases for chemical additives and admixtures, in response to rising raw material costs driven in particular by the COVID-19 pandemic and Russia’s war of aggression against Ukraine. The suspected coordination by those manufacturers took place in the context of the preparation of press releases within national trade associations aimed at justifying the price increases.
The Commission found three separate suspected infringements in France, Germany and Spain, and has sent Statements of Objections to the following manufacturers and trade associations:
- France: Cemex, Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika, TAM, and the trade association SYNAD;
- Germany: Cemex, Ha-be, Mapei, Master Builders Solutions, MC Bauchemie, Liesen, Remei, Sika and the trade association Deutsche Bauchemie;
- Spain: Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika and the trade association ANFAH.
If the Commission’s preliminary view is confirmed, this conduct would infringe competition rules that prohibit cartels (Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’)).
Article 101 TFEU prohibits agreements and other restrictive business practices that may affect trade and prevent or restrict competition within the Single Market. The implementation of Article 101 TFEU is defined in Regulation 1/2003.
The addressees of the three Statements of Objections now have the possibility to reply to the Commission’s concerns.
Background
On 17 October 2023, the Commission carried out unannounced inspections at the premises of companies active in the construction chemicals sector in several Member States.
A Statement of Objections is a formal step in the Commission’s investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their views on the case before representatives of the Commission and national competition authorities.
If the Commission concludes, after the parties have exercised their rights of defence, that there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of a company’s annual worldwide turnover. The Commission may also impose on the company any remedies which are proportionate to bring the infringement effectively to an end.
There is no legal deadline for the Commission to complete antitrust inquiries into anticompetitive conduct. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the parties’ exercise of the rights of defence.
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ALCHEMPro News Desk
