European Commission Fines Battery Makers €72 Million Over Long-Running Pricing Cartel

Key Takeaways

• €72 Million Cartel Fine: The European Commission fined Exide, FET (including predecessor Elettra), Rombat, and trade association EUROBAT a combined €72 million for participating in a long-running cartel involving automotive starter batteries.
• Price Coordination Through Surcharges: The companies coordinated so-called “EUROBAT premiums” tied to lead prices and used them as an industry-wide surcharge in negotiations with car and truck manufacturers.
• Leniency Avoids Fine: Clarios received full immunity after revealing the cartel to regulators under the Commission’s leniency programme.
• Trade Association Liability: EUROBAT was fined €125,000 for facilitating coordination among its members, reinforcing that trade associations can be held directly accountable for anticompetitive conduct.
• Damages Claims Still Possible: The Commission’s decision allows affected customers to pursue damages in national courts, with the ruling serving as binding proof of the infringement.

Deep Dive

The European Commission has imposed fines totaling roughly €72 million on three automotive starter battery manufacturers and their industry trade association for participating in a long-running cartel that distorted pricing for car and truck batteries across Europe.

In a decision announced on December 14, the Commission said Exide, FET (including its predecessor Elettra), and Rombat, together with the trade association EUROBAT, coordinated for more than a decade on pricing mechanisms for automotive starter batteries sold to vehicle manufacturers in the European Economic Area. The conduct breached EU antitrust rules by restricting competition and potentially driving up costs for European car and truck makers.

A fourth manufacturer, Clarios (formerly JC Autobatterie), avoided a fine after revealing the cartel to regulators under the Commission’s leniency programme. The Commission also closed proceedings against battery manufacturer Banner and service provider Kellen after its investigation.

Coordinated Surcharges Tied to Lead Prices

According to the Commission, the cartel ran from July 2005 until late 2017 and involved secret coordination on how battery makers passed on lead costs to their customers. Lead is the most important input material in automotive starter batteries, and manufacturers typically apply a surcharge to reflect changes in raw material prices.

While such surcharges can be legitimate, the Commission found that the companies went further by agreeing, assisted by EUROBAT, to calculate and publish so-called “EUROBAT premiums” in the industry publication Metal Bulletin. Those agreed figures were then used in negotiations with automotive original equipment manufacturers to ensure the surcharge remained higher than it would have been under normal competitive conditions.

The Commission concluded that this conduct amounted to a single and continuous infringement “by object” under Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement, which prohibit agreements that restrict competition within the Single Market.

Fines and Leniency Decisions

The fines were calculated under the Commission’s 2006 Guidelines on fines, taking into account the value of sales to automotive manufacturers, the duration and seriousness of the infringement, its geographic scope, and the market shares of the companies involved.

Exide received the largest fine at €30 million. Rombat was fined €20.218 million, with part of that amount jointly and severally liable with its parent company, Metair. FET was fined €6.11 million, including an amount jointly and severally liable with its parent company, Resonac. Elettra, FET’s predecessor, was fined €15.594 million, though the portion linked to its former parent company, Dofin, was capped at zero because Dofin is no longer economically active. EUROBAT was fined €125,000 for its role in facilitating the cartel.

Clarios received full immunity after disclosing the cartel under the Commission’s leniency program, while FET and Rombat received fine reductions of 50 percent and 30 percent respectively for their cooperation. The Commission also granted a fine reduction to one company based on an inability-to-pay claim and allowed several companies to pay their penalties in installments.

Warning to Trade Associations

Executive Vice-President Teresa Ribera, responsible for competition policy as part of her Clean, Just and Competitive Transition portfolio, said the decision underscores the Commission’s zero-tolerance approach to price fixing.

“Today we have fined three automotive starter battery manufacturers and their trade association for agreeing to introduce a surcharge for the sale of their batteries, in breach of EU competition rules. In other words, they fixed the price,” Ribera said. “With this decision, we also remind trade associations that they should not use their position as representatives of the industry to facilitate collusion among their members.”

The Commission’s decision does not prevent affected customers from seeking damages. Under EU law, individuals or companies harmed by anticompetitive conduct may bring claims before national courts, and a Commission infringement decision constitutes binding proof that the behavior took place and was illegal.

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