Car battery producers will oppose EU cartel charges in Brussels

A consortium of car battery makers will reject European Union (EU) accusations of cartel activity next week at a closed hearing in Brussels, according to sources familiar with the matter. The companies involved are Banner, Clarios, Exide, FIAMM Energy Technology (FET) and its predecessor Elettra, and Rombat, as reported by Reuters.

In addition to these manufacturers, trade association Eurobat and its service provider Kellen are also facing allegations from the European Commission. The companies are due to present their defense during a week-long hearing that will bring together senior Commission officials, representatives from national competition agencies, as well as rivals and customers. These hearings usually allow defendants to present their case and can sometimes result in narrowed charges, although such results are rare.

Related: EU accuses car battery producers of cartel activity

The European Commission, the EU’s competition watchdog, imposed the charges last year, accusing the group of colluding to artificially raise the price of starter batteries sold to European carmakers. This alleged collusion reportedly occurred between 2004 and 2017. During this period, seven entities allegedly developed and implemented the “Eurobat Premium” system through which they created, published and adhered to new price indices during negotiations with car manufacturers.

The batteries in question are 12V lead-acid batteries, which are necessary to start most combustion engine vehicles. If companies are found guilty of violating EU antitrust rules, they face penalties of up to 10% of their global turnover.

Source: Reuters