The European Commission on Tuesday announced an unannounced inspection of tire makers including Michelin, Continental, Nokian and Goodyear, raising concerns about possible price fixing in breach of EU competition rules.
The Commission, which ensures competition in the European Union (EU), has said it is concerned “It’s price coordination has taken place” Among several companies in the sector in a press release published in Brussels. It did not disclose the names, but clarified that the products concerned by the inspection are new tire replacements for passenger cars, vans, trucks and buses sold in Europe.
Michelin confirmed on Tuesday that it is one of the European tire manufacturers subject to these inspections by the European Commission. The French group, however, contested “The existence of clearly anti-competitive practices, and any practice of coordination on prices, as indicated by the European Commission in its communication today”., confirmed a spokesperson for the tire giant in a message to Agence France-Presse (AFP). Michelin insists that it “It faithfully enforces competition rules in all countries in which it operates”.
Investigations at Continental, Nokian and Goodyear
German tire maker Continental quickly confirmed it was concerned by the probe being carried out in EU member states. “Antitrust investigation underway at Continental in Germany”., an AFP spokesperson revealed. Finnish Nokia and American Goodyear also confirmed that they were concerned and gave assurances “Cooperate fully” with the authorities.
“Unannounced inspections are the initial step in any investigation into suspected anti-competitive practices. The fact that the Commission carries out such inspections does not mean that the companies are guilty and does not prejudge the outcome of the investigation.European executive underlined.
In this type of competition violation, a company found guilty can be fined up to 10% of its global annual turnover. There is no legal time limit for conducting such investigations. Shares of companies in the sector fell in the stock market after the announcement of the surprise investigation.
