ARTICLE
8 October 2013

Belgium – Belgian Competition Authority Fines Cement Producers € 14.7 Million For Anticompetitive Behaviour In Standardisation Process

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Van Bael & Bellis

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On 30 August 2013, the Belgian Competition Council imposed fines amounting to a total of around € 14.7 million on three cement producers, industry association Febelcem and the research institute for the cement industry CRIC/OCCN.
Belgium Antitrust/Competition Law

On 30 August 2013, the Belgian Competition Council imposed fines amounting to a total of around €14.7 million on three cement producers (Cimenteries CBR S.A., Compagnie des Ciments Belges S.A. and Holcim Belgium S.A.), industry association Febelcem and the research institute for the cement industry CRIC/OCCN.

In its decision, the Competition Council held that between May 2000 and October 2003 the parties colluded to restrict access for new entrants to the Belgian cement market. In particular, the Competition Council noted that the Belgian cement producers are directly or indirectly involved in setting standards and awarding standard compliance markings or technical approval for cement products via Febelcem or CRIC/OCCN. The Competition Council subsequently found that there is evidence that the cement producers had delayed awarding standard compliance markings or technical approval for ground slag in ready-mix concrete, as requested by competing cement manufacturer Orcem. The Competition Council concluded that the Belgian cement producers and Febelcem, in cooperation with the CRIC/OCCN, had thus manipulated the standardisation of the use of ground slag in ready-mix concrete with the object, and at least the potential effect, of delaying entry of this product on the market, thereby reinforcing their own position on the market.

The Competition Council imposed fines of € 6.9 million on CBR, € 5.8 million on Holcim, € 1.7 million on CCB, € 100,000 on Febelcem, and € 100,000 on CRIC/OCCN.

In a first reaction to the decision, Ecocem (the parent company of Orcem), announced that it is considering launching damage recovery proceedings before the Belgian courts. Ecocem reportedly estimates the damages it suffered as a result of the cartel at € 40 million. Ecocem also announced that it will lodge a complaint with the European Commission because, according to Ecocem, similar practices might have occurred elsewhere in the EU.

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