The European Commission on Tuesday fined four automotive starter battery manufacturers and the trade association that represents the sector over a decade-long cartel that fixed prices in breach of antitrust rules.
The companies are American Exide and Clarios, Italian FIAMM Energy Technology (FET) and its predecessor, Elettra, and Romanian Rombat, plus the trade association EUROBAT. The total amount of the fines is around €72 million, with different penalties depending on the length and gravity of the breach.
“We have zero tolerance for price fixing or any type of cartel. It is our duty to ensure that our citizens and businesses, including European auto manufacturers, can depend on suppliers that play fair and respect competition rules,” said Teresa Ribera, Executive Vice President of the Commission in charge of antitrust.
The investigation led by the Commission found that for 12 years, the companies and the trade association engaged in anticompetitive measures within the European Economic Area. The practice started in 2005 and ended in 2017. In particular, they created and published premiums based on their purchase price for lead in trade publications and agreed to use those premiums in their price negotiations with customers, mainly car makers.
Clarios fully cooperated with the investigation and, thanks to their help, was spared the fine. FET and its predecessor, Elettra, were fined €6 million and €15.5 million, respectively, a 50% cut due to their collaboration with the Commission. Rombat also received a lower fine due to their willingness to help, totalling €20 million. EUROBAT got a €125,000 fine.
EUROBAT’s involvement is significant and was also singled out by Ribera, who said that trade associations “should not use their position as representatives of the industry to facilitate collusion among their members.”
