The European Commission has launched a major antitrust action against several construction chemicals manufacturers and industry associations, accusing them of allegedly coordinating price increases in a market that directly affects the cost of cement, concrete and mortar.

 

The Commission said it has issued Statements of Objections — a formal step in an investigation — to companies active in France, Germany and Spain, as well as three national trade associations. The move follows preliminary findings that the companies may have breached EU competition rules by working together to raise prices.

 

The investigation centres on chemical additives used to improve cement production and chemical admixtures that enhance the performance, durability and workability of concrete and mortar. These materials are key inputs in the construction sector, meaning any price increases can have a direct impact on building costs.

 

According to the Commission, manufacturers may have coordinated future price increases between 2021 and 2022 as raw material costs surged, driven in part by the COVID-19 pandemic and Russia’s war of aggression against Ukraine.

 

The suspected coordination allegedly took place while companies were preparing communications through national trade associations aimed at explaining and supporting price increases.

 

The Commission identified three separate suspected infringements:

 

France: Cemex, Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika, TAM, and trade association SYNAD.

 

Germany: Cemex, Ha-be, Mapei, Master Builders Solutions, MC Bauchemie, Liesen, Remei, Sika and trade association Deutsche Bauchemie.

 

Spain: Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika and trade association ANFAH.

 

The Commission stressed that issuing Statements of Objections does not mean the companies have been found guilty. The parties now have the opportunity to respond to the allegations and defend their positions.

 

If the Commission confirms its preliminary findings, the conduct could be considered a violation of Article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits agreements and practices that restrict competition within the EU’s Single Market.

 

Companies found guilty of cartel behaviour can face fines of up to 10% of their annual worldwide turnover. The Commission may also impose measures requiring companies to end anti-competitive practices.

 

The latest action follows unannounced inspections carried out by the Commission on 17 October 2023 at the premises of companies operating in the construction chemicals sector across several EU member states.

 

A Statement of Objections is a formal stage in EU competition investigations. Companies can review evidence gathered by the Commission, submit written responses and request an oral hearing before Commission representatives and national competition authorities.

 

The Commission said there is no fixed deadline for completing antitrust investigations, with timelines depending on factors including the complexity of the case, cooperation from companies and the exercise of defence rights.