Yesterday, the European Commission launched an antitrust raid on the European tire industry, and according to its official website, the company under investigation may be involved in cartel activities, in violation of EU antitrust law.
Cartel (also known as monopoly interest group, monopoly alliance, enterprise alliance, industry alliance) is one of the forms of monopoly organization, for:Monopolize the market to obtain high profits, the manufacturer of or sale of a similar commodity through the formation of an agreement on the distribution of goods, output and market shareMonopolistic organizations and relationships
The products in question allegedly included new replacement tires for passenger cars, vans, trucks and buses sold in the European Economic Area. The Commission is concerned that the company under investigationCoordinate with each other to control the product**
In recent years, the European Commission has imposed fines on nearly a dozen cartel activities in the automotive industry, including car bearings, car seats, and braking systems.
Companies that violate EU antitrust rules will:Faces fines of up to 10% of its global turnover。Under the leniency scheme, companies involved in cartels may be exempt from fines or significantly reduced if they report their behaviour and cooperate with the Commission during the investigation.
A number of tire giants were investigated, and their stock prices plummeted
At present, a number of tire giants have confirmed that they have been investigated by the European Commission, including Pirelli, Goodyear, Michelin, Continental, and Nokian Tire.
Companies such as Bridgestone, Hankook, Yokohama and Nexans have not responded for the time being.
A Pirelli spokesperson said the company had been complying with all laws and regulations and pledged its full support to the investigators.
Michelin said the company was included in the EU investigation and strictly adhered to competition rules.
Continental said it was under investigation by European antitrust authorities in Germany and could not comment further on the ongoing investigation.
The official statement from Goodyear's EMEA region wrote that its European offices were raided by European authorities yesterday and that the company is fully cooperating with them. As the investigation continues, Goodyear is unable to provide further information.
Similarly, Nokian Tyres said it was cooperating fully with the authorities and had no information on the results of the inspection and could not comment on the ongoing investigation.
According to the European Commission, surprise inspections are preliminary investigations into suspected anti-competitive behaviour and that conducting such inspections does not imply that the companies have committed anti-competitive behaviour or prejudging the findings of the investigation itself.
However, flies don't bite eggs, and capital markets are already worried about this investigation. After the news came out,Pirelli share price** nearly 38%, followed by a trading halt. Michelin**29%Continental**35%
Moreover, there are many cartel activities in the tire industry, and some of the tire companies surveyed above, as well as other giant companies in the industryPrevious convictions
Indian tire cartel, a number of tires fined
In 2022, the Competition Commission of India (CCI) had said it had found in 2018 that five tyre manufacturers and trade associations had violated the provisions of India's competition law and had been involved in cartel activities in 2011 and 2012.
After many years, these six tire-related units have been fined, including:Apollo Tires, MRF, Hitt Tires, JK Tires, Birla Tires and the Indian Association of Automotive Tyre Manufacturers
These companies passedLimit and control the production of bias tires and**to improve its market**.
In the end, the CCI imposed a penalty of 42 on Apollo tiresRs 600 million (about 3.)RMB 6.2 billion); 62Rs 200 million (about 5..)RMB 2.8 billion); Hitt tires were punished with 25Rs 200 million (about 2..)1.4 billion RMB) and imposed a fine of 31 on JK tiresRs 0 crore (about 2.)6.3 billion RMB) and imposed a fine of 17 on Birla tiresRs 800 million (about 1.)5.1 billion yuan) and issued suspension orders to various tire manufacturers.
At the same time, the Indian Association of Automobile Tire Manufacturers imposed a penalty of 8A fine of 400 million rupees (about 71.35 million yuan) and instructed the members of the association to get out of the control of wholesale and retail**.
South African tire cartel, tug-of-war for more than 10 years
Also in 2022, the South African Competition Commission held a series of hearings to resolve the issueSouth Africa Apollo Tires *** Goodyear South Africa *** South Africa Continental Tires *** Bridgestone South Africa ***of the ** manipulation allegations.
The manipulation case was allegedly completed with the help of the South African Tyre Manufacturers Association (SATMC) from 1999 to 2007, and the persons under investigation were members of the SATMC.
The case dates back to April 2008, when a team complained about a local tire manufacturer manipulating products**.
The committee investigated SATMC and the four tire manufacturers mentioned above and found them to existDiscuss and operate passenger cars, light trucks, buses, off-road, agricultural and construction tires**
The investigation also found that Yokohama and Michelin were not involved in the act.
In September 2010, Bridgestone applied for and was granted immunity from prosecution under the Commission's leniency policy.
In its leniency application, Bridgestone acknowledged that it held ** meetings with competitors between 1999 and 2007.
The meeting is attended by sales and marketing representatives from the tire manufacturer to coordinate the timing of tire price increases and the average *** percentage.
Apollo Tyres of South Africa settled with the commission in December 2011 and paid an administrative fine of R45 million (nearly €4 million at the time).
More than a decade later, the hearing is seeking administrative penalties for the remaining businesses suspected of manipulating**.
Conclusion:In addition to the above cases, Hankook Tire was fined 217 by the Shanghai Municipal Price Bureau in China520,000 yuan, because Hankook abused its dominant market position and engaged in monopolistic behavior.
So, this timeBridgestone, Continental, Goodyear and Hankook, which are being investigated by the European Union, all have a history of suspected involvement in market monopoly activities。The results of the European Commission's investigation will continue to be watched.