As reported last week, on 9 July the General Court of the European Union largely upheld the European Commission’s decision to inspect Michelin’s premises for potential anti-competitive behaviour but partially annulled the decision due to insufficient evidence in one specific area. Michelin has now issued a statement regarding this decision.
A victory of sorts for Michelin. Yesterday, Europe’s second highest court delivered a pivotal ruling in the case filed by Michelin in the wake of unannounced European Commission inspections. While the General Court of the European Union (Second Chamber) largely upheld the Commission’s decision to inspect Michelin’s premises for potential anti-competitive behaviour, it partially annulled the decision due to insufficient evidence regarding a specific aspect of the alleged misconduct.
The European Commission has confirmed it is carrying out “unannounced inspections” in connection with raids at the offices of a number of tyremakers earlier in the year. This round of raids, however, has only taken place at the premises of “a consultancy firm” in two member states, which suggests the case is beginning to focus its attention.
The share prices of Bridgestone, Continental, Goodyear, Michelin, Nokian and Pirelli were down by an average of 2.35 per cent following the news that the European Commission has started an antitrust investigation within the European Union.
Unannounced inspections, investigations, visits, raids. Whatever you call them, having the European Commission come knocking uninvited is not how any tyre manufacturer wants to start 2024. Nevertheless, that is exactly what happened at the tail-end of January across “several member states” within the European Union.
Following the news that the European Commission has opened a price-fixing investigation across “several member states”, Michelin has officially confirmed that it too has been investigated as part of EC antitrust case. Nokian, Goodyear, Continental, Pirelli and Bridgestone have also been investigated as part of the EC case.
Pirelli has confirmed that it is among the tyre manufacturers in European Union member states receiving an unannounced visit from European Commission investigators today, according to Tyrepress sister site PneusNews. The EC is concerned that companies producing replacement market tyres for cars, vans, trucks and busses may have “violated EU antitrust rules that prohibit cartels and restrictive business practices.” A Pirelli spokesperson said the company “has always acted in total compliance with all rules and regulations,” adding that “it is guaranteeing full support” to investigators.
Following the news that the European Commission is investigating tyre manufacturers across Europe for anti-competitive practices, we now know that at least Nokian, Continental and now Goodyear have been visited.
The European Commission has initiated an unannounced inspection at Nokian Tyres plc’s headquarters in Nokia, Finland. The investigation forms part of the EC’s wider look at tyre manufacturers across several member states:
The European Commission is carrying out unannounced inspections at the premises of companies active in the tyre industry “in several “member states”. The reason? “The commission has concerns that the inspected companies may have violated EU antitrust rules that prohibit cartels and restrictive business practices”, according to an official statement. So far, Nokian Tyres, Continental, Goodyear, Pirelli, and Bridgestone have confirmed they have received an unannounced inspection.
Goodyear’s US$2.8 billion takeover of Cooper has passed a significant milestone, following the deal’s approval by antitrust authorities in China. According to official filings, the merger between Goodyear Tire and Rubber Company and Cooper Tire & Rubber Company was approved by the State Administration for Market Regulation (SAMR) on 23 April 2021.
Tyre manufacturers Toyo, Bridgestone and Continental are amongst the 52 automotive suppliers that paid a total of $23 million in settlements for antitrust law violations in California, USA.
The US Justice Department indicted one Bridgestone Corporation executive and two former officials for conspiring to fix the prices of certain automotive parts, reports Tire Review. Bridgestone itself agreed in February to plead guilty to price-fixing, paying a $425 million criminal fine. The case involves anti-vibration parts used in automotive suspension systems and engine mounts.
Earlier today, Bridgestone shared news that it has entered into a plea agreement with the US Department of Justice on antitrust activities and accepted a $425 million fine. But it omitted to mention that the amount to be paid is so large because this isn’t the first time Bridgestone has been found guilty of price-fixing in the United States. In a statement published yesterday, the Department of Justice confirmed that Bridgestone’s failure to disclose its participation when pleading guilty to other violations in October 2011 was a “factor in determining the $425 million fine.”
On 13 February, Bridgestone Corporation entered into a plea agreement with the US Department of Justice; this deal will see the company plead guilty to an antitrust conspiracy related to the sale of automotive anti-vibration rubber products. Bridgestone will also pay a US$425 million fine, and says it now intends to “take appropriate disciplinary action against certain responsible employees” in accordance with applicable corporate standards.
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