Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC Continues Investigation into Smart Card Chip Supplies After Settlement Talks Fall Through, (Apr 23, 2013)

The European Commission (EC) is investigating suppliers of smart card chips for suspected cartel conduct. The EC announced yesterday that it has concerns that certain chips suppliers might have agreed or coordinated their behavior in Europe in an effort keep prices up. Smart card chips are used in mobile phone SIM cards, bank cards, passports, identity cards, Pay TVs, and in numerous other applications, according to the EC.

The announcement that the EC was sending statements of objections to suspected cartel participants follows failed settlement talks between the regulator and the unnamed companies. "The Commission initially agreed to explore the possibility of a settlement with the companies involved but has now discontinued the talks due to lack of progress," the EC said. "The normal antitrust procedure will now run its course."

"It is not because settlement talks fail that companies get off the hook," said Joaquín Almunia, Commission Vice President in charge of competition policy. "The essence of settlement is to benefit from a quicker, more efficient procedure, and to reach a common understanding on the existence and characteristics of a cartel. If that is not possible, the Commission will not hesitate to revert to the normal procedure and to pursue the suspected infringement."

News: Antitrust