Displaying items by tag: Competition Council

Romania: The Competition Council has fined Holcim Romania, Romcim and Heidelberg Materials Romania a total of €43.7m for allegedly coordinating pricing policies during the period of 2017–2018, according to Economedia Romania. Holcim Romania was fined €18.2m, Romcim €13.3m and Heidelberg Materials €12.2m.

The Council found that the companies exchanged non-public commercial information regarding prices, discounts and payment terms through customers, which was used to establish commercial strategies regarding pricing policy. Bogdan Chirițoiu, president of the Competition Council said that “The behaviour led to reduced competition, which generated an increase in cement prices compared to neighbouring countries.”

Holcim has since responded, saying that it will appeal the fine imposed and calling the decision ‘unfounded’ in a recent press release.  

Bogdan Dobre, CEO of Holcim Romania & Market Head Moldova, said “Holcim Romania rejects the conclusions of the investigation report and declares that it has acted and continues to act in accordance with the competition rules. We consider the decision to be unfounded, therefore Holcim Romania will exercise its right of defense before the courts and will challenge the sanction issued by the Romanian competition authority.”

Romania: The Competition Council says it has found irregularities in the cement market. Following an investigation started in the autumn of 2018 it has revealed that the country’s three major producers – Holcim, CRH and HeidelbergCement – were operating with high profit margins and similar market share, according to Business News Europe. It noted that geographic distribution of customers around the three companies’ production facilities might support a hypothesis of market collusion. It also reported similar production capacity utilisation rates between the main producers despite different production capacities.

The Competition Council has not drawn any conclusions from the report. Previously, it said that if it does find any evidence of cartel-like behaviour it could apply a fine of up to 10% of company turnover.

Romania: The Competition Council has launched an investigation into an alleged anti-competitive agreement between Holcim, CRH and HeidelbergCement in early November 2018. It is concerned that there has been possible coordination of prices between the companies since 2010. As part of the probe, it conducted raids at the headquarters of the three companies and seized documentation. It has warned that fines of up to 10% of company turnover are applicable should it find any evidence of collusion. However, it also mentioned that companies that cooperated with the competition authority could expect leniency in the form of immunity to or reduced fines.