EU antitrust regulators accuse group of car battery makers of running cartel (updated)

Exide Industries

30/11/2023 11:32

(Adds Eurobat, Clarios comment, details)
    By Foo Yun Chee
       BRUSSELS, Nov 30 (Reuters) - A group of automotive
starter battery makers, trade body Eurobat and its service
provider Kellen were accused by EU antitrust regulators on
Thursday for breaching antitrust laws by operating a cartel to
fix battery prices.
    "The five starter batteries manufacturers created, published
and agreed to use new indices in their price negotiations with
car producers (the so-called 'Eurobat Premium System')," the
European Commission said in a statement.
    The five manufacturers are Banner, Clarios, Exide, Elettra
and Rombat. They make 12-volt lead batteries which are currently
used to start most combustion engine cars. The batteries are
used for basic back-up functions in cars such as lighting and
centralized locks.
    The Commission said it had sent a statement of objections to
the group, saying the cartel, which ran between 2004 and 2017,
aimed to fix an important element of the final battery price.
    The EU competition enforcer said Eurobat and its service
provider Kellen were aware of the alleged conduct and actively
contributed to it by assisting the battery manufacturers in
creating and running the Eurobat premium system.
    Clarios declined to comment on ongoing investigations and
legal proceedings.
    "But we do not believe that we are exposed to any material
risk. We are co-operating with the authorities in their
investigations," the German company said.
    The other manufacturers could not be immediately reached for
comment.
    Eurobat said it has seen the Commission's press statement
but not the official document.
    "We have not received nor studied the official statement of
objections yet, so we cannot make any comment at this point," a
spokesperson said. 
    Companies face fines of as much as 10% of their global
turnover for breaching EU antitrust rules. The Commission has in
previous years penalised nearly a dozen cartels in the car
industry, among them suppliers of automotive bearings, car seats
and braking systems.

 (Reporting by Foo Yun Chee, additional reporting by Christoph
Steitz in Frankfurt and Gilles Guillaume in Paris; Editing by
Susan Fenton)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))