European Commission Suspects Five Companies in Lead Scrap Battery Cartel

The European Commission said Wednesday it has informed five lead recycling companies that it suspects them of having participated in a purchasing cartel for scrap lead-acid batteries, in breach of EU antitrust rules.

"The commission has concerns that, from 2009 to 2012, five lead recycling companies participated in a cartel aimed at fixing the purchase prices for scrap lead-acid batteries in Belgium, France, Germany and the Netherlands," the EC said in a statement.

It alleges in its statement of objections that these five companies agreed or coordinated their behavior only in order to maintain higher profit margins.

As a result, they may have lowered the prices paid to scrap dealers, many of which are small and medium-sized companies.

"Since such behavior would likely reduce the value of used batteries sold for scrap, this could ultimately be to the detriment of sellers," the EC added.

If established, such behavior would violate EU rules that prohibit anti-competitive business practices such as collusion on prices and market sharing.

The sending of a statement of objections does not prejudge the outcome of the investigation, the EC said.

(platts.com)