EU Accuses Five Starter Batteries Manufacturers Of Running Price Fixing Cartel

(RTTNews) - The European Commission has accused a group of five automotive starter batteries manufacturers, along with trade association Eurobat and its service provider Kellen, of breaching EU antitrust rules for colluding to increase battery prices by running a cartel.

According to the preliminary view of the EU competition regulator, the five manufacturers - Banner, Clarios, Exide, FET or Elettra, and Rombat - created and ran the Eurobat premium system between 2004 and 2017 by using new indices in their price negotiations with car producers.

The manufacturers allegedly fixed an important element of the final battery price to increase prices of batteries sold to car producers in the European Economic Area (EEA) for use in new cars and as replacements.

Automotive starter batteries provide an electric current to the starting motor, which starts the engine in cars powered by traditional combustion engines, and also supplies power to the electrical equipment of cars.

The regulator notes that Eurobat and its service provider Kellen were aware of the alleged conduct and actively contributed to it by assisting the battery manufacturers in creating and running the Eurobat premium system.

The Commission said if its preliminary view is confirmed, these actions would infringe Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement, which prohibit cartels and other restrictive business practices.

This preliminary view is a formal step in the Commission's investigations into suspected violations of EU antitrust rules. The infringement, if confirmed, would lead to the Commission adopting a decision to prohibit the conduct and impose a fine of up to 10 percent of a company's annual global turnover.

The Commission has a track record of fining suppliers of automotive bearings, wire harnesses in cars, flexible foam used in car seats, parking heaters in cars and trucks, alternators and starters, air conditioning and engine cooling systems, lighting systems, occupant safety systems, braking systems and spark plugs.

The Commission has also fined car manufacturers 875 million euros for restricting competition in emission cleaning for new diesel passenger cars.