Brussels: The European Commission has levied hefty penalties totaling €72 million (approximately $84.5 million) against three automotive battery manufacturers and the trade association EUROBAT for engaging in a long-running cartel that violated EU antitrust regulations. The fines mark a decisive move by Brussels to crack down on anticompetitive practices within critical industrial sectors.
The Commission stated that battery producers Exide, FET, and Rombat, along with EUROBAT, coordinated pricing and market practices for over 12 years across the European Economic Area, restricting competition and potentially inflating costs for car and truck production throughout Europe. This prolonged collusion affected the sale of automotive starter batteries, a key component in vehicles powered by combustion engines.
Exide bore the largest penalty, receiving a fine of €30 million, while the other firms were also penalized according to their participation in the cartel. The Commission underscored that such anticompetitive behavior undermines market fairness and harms both manufacturers and consumers.
In a notable development, Clarios, another company involved in the scheme, avoided financial penalties after revealing the cartel’s activities under the EU’s leniency programme. This initiative encourages firms to come forward, aiding regulators in uncovering and dismantling illegal agreements.
Automotive starter batteries, essential for vehicle ignition and electrical systems, form a critical part of the European automotive supply chain. The cartel’s actions disrupted normal competition, influencing pricing and availability across multiple markets, with repercussions for both manufacturers and end users.
The European Commission’s action reflects its commitment to maintaining robust market integrity and sending a strong signal that antitrust violations, particularly those affecting large industrial sectors, will face strict enforcement. This ruling follows a broader pattern of regulatory vigilance, with Brussels recently targeting cartels in other automotive-related industries and beyond.
The Commission emphasized that the penalties serve both as punishment for past misconduct and as a deterrent against future collusion, reinforcing the EU’s dedication to fair competition and consumer protection.