Three of Europe’s largest paper companies, UPM, Norske Skog, and M-real Oyj, are being investigated by antitrust regulators in Europe. The three companies are being investigated over possible price fixing for both finished paper, as well as recovered paper.
In probes coordinated with U.S. and Canadian authorities, European regulators hunted for ``evidence of cartel agreements and related illegal practices concerning price fixing, fixing of other commercial terms, and/or allocation of customers,'' the European Commission said in a statement in Brussels.
EFTA's Surveillance Authority, assisted by the Norwegian Competition Authority, today began an investigation of possible price co-operation within i) the area of publication paper, which includes newsprint and magazine paper and ii) the purchase of recovered paper.
The competition authorities also conducted an investigation regarding possible price co-operation among producers of publication paper in 1995-96, but the case was closed in 2002 without any violations being discovered.
In a prepared announcement Norske Skog said it would cooperate with the competition authorities.
UPM, the world's third-biggest papermaker, approached the authorities in January after an internal investigation, the Helsinki-based company said. Conditional immunity was granted over certain practices that were disclosed to regulators, meaning UPM may avoid paying fines, the company said.
The commission, which declined to confirm the companies subject to the raids, said it has no deadline to complete the inquiry. ``Several product markets'' for paper and forestry products are being examined, the commission said.
In spring 2003, UPM initiated an internal investigation of competitive practices in all its units. At the same time the company also implemented additional competition law compliance programs for its employees clearly signaling zero tolerance for any antitrust activity.
On January 15, 2004, after the internal investigation and to follow sound principles of corporate governance UPM decided to approach competition authorities in the European Union, the United States and Canada.