In a major move, EU antitrust regulators conducted surprise raids on tyre industry leaders Pirelli, Continental, Michelin, and Nokian, triggering a notable decline in their shares. The European Commission, responsible for imposing competition rules in the EU, revealed the investigation without disclosing specifics in line with its usual protocol.
Pirelli, maintaining its innocence, assured full cooperation with authorities. Continental confirmed the investigation at its German offices, while Michelin stressed its commitment to compliance with competition rules. Nokian Tyres, headquartered in Finland, acknowledged the raid, and pledged cooperation.
The focus of the investigation centers on potential price coordination, including through public communications, concerning new replacement tyres for vehicles in the European Economic Area. Companies found guilty of breaching EU antitrust rules could face fines of up to 10% of their global turnover. This development follows the EU’s recent crackdown on cartels within the automotive industry, emphasizing its commitment to fair competition. The share declines of Pirelli, Michelin, and Continental underscore the market’s immediate reaction to the unfolding probe.
