Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Pometon suspected by EC of participation in steel abrasives cartel, (Dec 4, 2014)
Organizations Mentioned:Eisenwerk Wü | Ervin | Metalltechnik Schmidt | Pometon S.p.A. | Winoa | rth
By Edward L. Puzzo, J.D.
Pometon S.p.A. is suspected by the European Commission of having colluded with competitors in the pricing of steel abrasives, the Commission announced today (European Commission case number 39792). Steel abrasives are loose steel particles used for cleaning or enhancing metal surfaces in the steel, automotive, metallurgy and petrochemical industries. They are also used for cutting hard stones such as granite and marble.
The Commission has concerns that Pometon may have coordinated on a key price component of steel abrasives, the "scrap surcharge", and that this coordination with other market participants affected the whole European Economic Area (EEA) market. Consequently, the Commission issued a Statement of Objections.
The Commission's investigation started with unannounced inspections in June 2010. In April 2014, the Commission settled with four companies (Ervin, Winoa, Metalltechnik Schmidt and Eisenwerk Würth) that admitted their involvement in the cartel. The total fines imposed were € 30,707,000. The investigation concerning Pometon continued under the standard cartel procedure.
The Commission takes the preliminary view that Pometon may have agreed with other participants not to compete on price with respect to individual customers. If established, such behaviors violate Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the European Economic Area (EEA) Agreement that prohibit anti-competitive business practices.
Companies: Pometon S.p.A.; Ervin; Winoa; Metalltechnik Schmidt; Eisenwerk Würth
News: Antitrust