Republished with full copyright permissions from The San Francisco Press.

The European Commission has recently raised concerns about potential antitrust violations by prominent automotive starter batteries manufacturers operating in the European Economic Area (EEA). The entities in question include Banner, Clarios (formerly known as JC Autobatterie), Exide, FET (and its predecessor Elettra), and Rombat. Additionally, the Commission has implicated trade association Eurobat and its service provider Kellen in the alleged anticompetitive behavior.

According to the Commission’s preliminary findings, these manufacturers and industry entities are suspected of colluding to inflate the prices of automotive starter batteries sold to car producers within the EEA. The timeline of the suspected collusion spans from 2004 to 2017 and revolves around the creation, publication, and implementation of new pricing indices, known as the ‘Eurobat Premium System’, for negotiating with car producers.

The alleged aim of this conduct was to manipulate a crucial component of the final battery price, thereby undermining fair competition within the market. Eurobat and its service provider Kellen are believed to have been complicit in these activities, actively involved in facilitating the operation of the Eurobat premium system.

Should the Commission’s initial view be validated, these actions would contravene Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement, which both prohibit the formation of cartels and other anticompetitive business practices. Nonetheless, it’s crucial to note that the issuance of a Statement of Objections does not predetermine the conclusions of the investigation.

In response to the unfolding situation, Commissioner Didier Reynders, responsible for competition policy, emphasized the importance of independent pricing within a competitive landscape. Reynders expressed concern at how the alleged collaboration among battery suppliers restricted price competition, potentially harming their customers – the car producers – and, ultimately, European consumers. Addressing the implicated parties, Reynders highlighted that they now have the opportunity to address the Commission’s concerns.