Commission settles cartel case with companies that limited competition in car parts market

Melco (Mitsubishi Electric) and Hitachi, together with another business called Denso, "coordinated prices and allocated customers or projects with regards to alternators and starters" between September 2004 and February 2010, the Commission said. Denso escaped a fine after disclosing details of the arrangements to the Commission.

The Commission issued the fines despite it confirming that "the forming and running" of the cartel happened outside of the European Economic Area (EEA). It said the cartel had nevertheless "affected European customers as alternators and starters were also sold directly to car manufacturers in the EEA".

EU competition commissioner Margrethe Vestager said: "If European consumers are affected by a cartel, the Commission will investigate it even if the cartel meetings took place outside Europe."

The Commission said the companies had "acknowledged their involvement" in the cartel and "agreed to settle the case".

EU competition rules place a general ban on organisations putting in place agreements which may affect EU trade where those agreements "have as their object or effect the prevention, restriction or distortion of competition" within the EU.

Among the practices the Commission took issue with was the coordinated responses the companies had made to some procurements run by car manufacturers. The companies determined the price at which they would tender for the contracts and "who should win the specific business", it said.

The companies shared commercially sensitive information, including information on pricing and market strategies, and also "shared out certain vehicle manufacturers and projects between themselves in terms of which of the three would supply alternators and starters", the Commission said.

The level of fines imposed on Melco and Hitachi were lowered as a result of their cooperation with the Commission's investigation and as part of the settlement of the case.