The European Commission has fined a group of battery manufacturers a total of €72 million for price fixing, finding that they had infringed fair market competition rules. A preliminary investigation, which began more than two years ago, found that Banner, Clarios (formerly Autobatterie), Exide, FET (formerly Elettra) and Rombat had negotiated with car manufacturers between 2004 and 2017 to apply new price indices within the so-called 'Eurobat Premium System'.
Experienced suppliers decided, with the help of EUROBAT, to create and publish a premium on the price of quality lead for batteries in industry publications such as Metal Bulletin. They then used the premium in negotiations with car companies to keep prices at a higher level. Lead is a key raw material in battery production; it represents the highest cost, and manufacturers are willing to pay more to ensure the required quality.
The "quality premium" is not in itself prohibited; it allows manufacturers to pass on the cost of purchasing quality lead to the car industry. However, the Commission stresses that suppliers are breaking the rules if they secretly agree to use the premium as an industry standard. EUROBAT and the service company Kellen actively helped to run the Eurobat Premium System, even though they knew that they were breaking EU rules.
"Their cooperation restricted competition and may have been one of the factors that raised the cost of producing cars and trucks in Europe," Brussels said. The largest fine was imposed on Exide, 30 million euros; Rombat 20 million, FET around 15.6 million. Clarios was exempted from the fine because it cooperated with the Commission.
The decision sends a clear signal to companies within the European Economic Area that the Commission takes hidden price agreements seriously, with the aim of preserving fair competition and market stability.
The EU intends to continue to maintain the standard as before, not allowing anyone to violate the system or break the already existing rules. If they do that, they will face sanctions.