Leading tire manufacturers, including Pirelli, Continental, Michelin, and Nokian Tires, underwent investigations by EU antitrust regulators on Tuesday as part of a potential cartel inquiry, resulting in a decline in their stock values. The European Commission, acting as the competition enforcer in the 27-country European Union, reported conducting raids on multiple tire makers across EU countries. The Commission adhered to its policy of not disclosing further details.
Pirelli, an Italian company, asserted that it had consistently acted fairly and in complete compliance with all rules and regulations. A spokesperson for Pirelli stated, “Pirelli informs that it is guaranteeing full support to the authority in the ongoing investigations.” German rival Continental acknowledged the European antitrust authorities’ investigations taking place at its offices in Germany.
France’s Michelin acknowledged its inclusion in the EU investigation and emphasized its strict adherence to competition rules. Nokian Tires, headquartered in Finland, confirmed that its premises were raided and expressed cooperation with the EU authority.
The market response was evident, with Pirelli shares dropping by as much as 3.8%, leading to a temporary suspension of trading. Michelin saw a 2.9% decrease, and Continental experienced a 3.5% decline.
The EU watchdog specified that the products under scrutiny were new replacement tires for passenger cars, vans, trucks, and buses sold in the European Economic Area, which includes EU countries, Norway, Iceland, and Liechtenstein.
The Commission raised concerns that the companies subjected to the investigation might have violated EU rules against cartels. In a statement, the EU executive expressed apprehension about potential price coordination among the scrutinized companies, including through public communications. Companies found guilty of breaching EU antitrust rules could face fines of up to 10% of their global turnover.
In recent years, the Commission has imposed fines on nearly a dozen cartels in the automotive industry. These have included cartels involving suppliers of automotive bearings, car seats, braking systems, and even a cartel that restricted competition in emission cleaning for new diesel passenger cars.
Frequently Asked Questions
What is the investigation regarding EU antitrust regulators and leading tire manufacturers?
The investigation concerns EU antitrust regulators scrutinizing tire manufacturers Pirelli, Continental, Michelin, and Nokian Tires for potential violations of competition rules under EU antitrust regulations.
Which tire manufacturers are currently under investigation by EU antitrust regulators?
EU antitrust regulators are currently investigating leading tire manufacturers Pirelli, Continental, Michelin, and Nokian Tires for potential breaches of competition rules as per EU antitrust regulations.
What are the implications of the EU antitrust regulators’ investigation on these tire manufacturers?
The investigation by EU antitrust regulators may have significant consequences for tire manufacturers Pirelli, Continental, Michelin, and Nokian Tires, as it aims to assess whether they have violated competition rules outlined in EU antitrust regulations.
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