
The European Commission (EC) has fined three companies -- Campine, based in Belgium; Eco-Bat Technologies, based in the U.K.; and Recylex, headquartered in France -- a combined €68 million (US$72.4 million) for colluding to fix prices for scrap automotive batteries, in breach of EU anti-trust rules.
Johnson Controls, a fourth company that initially was part of the EC investigation, was not fined because it revealed the existence of the cartel.
In a statement released following the ruling, EC Commissioner Margrethe Vestager, in charge of competition policy, says, "Well-functioning markets can help us reduce waste and support the circular economy. Therefore, we do not tolerate behavior that undermines competition. The companies fined today have colluded to maximize their profits made from recycling scrap batteries, reducing competition in this essential link of the recycling chain."
According to the EC, from 2009 to 2012, the four recycling companies took part in a cartel to fix the purchase prices of scrap lead-acid automotive batteries in Belgium, France, Germany and the Netherlands.
The EC sent formal complaints to the lead recycling companies in 2015, alleging they illegally agreed to reduce the purchase price paid to scrap metal recyclers for scrap lead-acid batteries, boosting profits for the companies from 2009 to 2012 in Belgium, France, Germany and the Netherlands.
The commission's investigation started following an immunity application by Johnson Controls in June 2012. In September 2012, the EC carried out inspections at the premises of several companies in the sector.
In June 2015, the EC initiated proceedings and sent a statement of objections to the four companies. The statement of objections also was sent to a fifth company. However, based on evidence, the EC says it decided not to pursue an investigation against that company.
According to the EC, most of the anti-competitive contacts between the four recycling companies took place on a bilateral basis, mainly through telephone calls, emails or text messages. Further, some contacts took place in person, either in bilateral meetings or in multilateral meetings. The parties were aware of the illegal character of their contacts and sometimes tried to disguise them by using coded language.
In assessing the fine, the EC gave Johnson Controls full immunity for revealing the existence of the cartel, thereby avoiding a fine of €38,481,300 ($41 million). The EC fined Eco-Bat Technologies €32.712 million ($35 million), Recylex was fined €26.739 million ($28.5 million) and Campine was fined €8.158 million ($8.7 million).
While the EC has imposed a fine on the three companies, it adds that any person or company affected by anti-competitive behavior described in this case may bring the matter before the courts of the member states and seek damages.
The case law of the Court and Council Regulation 1/2003 both confirm that in cases before national courts, a EC decision constitutes binding proof that the behavior took place and was illegal. Even though the EC has fined the companies concerned, damages may be awarded without being reduced because the fine.
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