Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC investigates suspected truck producers cartel, (Nov 20, 2014)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) announced today that the agency has sent a Statement of Objections to several heavy and medium duty truck producers that are suspected of having participated in a cartel in breach of European Union (EU) rules. The Commission noted that the sending of such notice does not prejudge the outcome of its investigation.

The Commission has concerns that certain heavy and medium duty truck producers may have agreed to or coordinated their pricing behavior in the European Economic Area (EEA). Such conduct, if established, would breach Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the Agreement on the EEA, which prohibit cartels and restrictive business practices.

In January 2011, the Commission confirmed that its officials started to undertake unannounced inspections at the premises of companies active in the truck industry in several Member States.

A Statement of Objections is a formal step in Commission investigations into suspected violations of EU antitrust rules. The EC informs the parties concerned in writing of the objections raised against them. The addressees can examine the documents in the Commission's investigation file, reply in writing, and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities.

If, after the parties have exercised their rights of defense, the Commission concludes that there is sufficient evidence of an infringement, it can issue a decision prohibiting the conduct and impose a fine of up to 10 percent of a company's annual worldwide turnover.

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