EC raids Euromoney's RISI paper business in cartel inquiry

The European Commission carried out an unannounced inspection at the premises of an unnamed kraft paper and industrial paper sack firm on Monday as part of an ongoing investigation into a potential cartel, while Euromoney said it's RISI subsidiary had been inspected.

The Commission announced on Tuesday that the inspection had taken place in a member nation the day before, choosing not to disclose the specific country, and noted that it was a follow on from two earlier raids in 2016 and 2017.

"The Commission has concerns that the inspected company may have violated Articled 101 of the Treaty on the Functioning of the European Union, which prohibits anticompetitive practices such as price fixing and customer allocation giving further details," a statement authored by the Commission read.

The Commision also highlighted the fact that inspections did not necessarily mean that those companies being inspected were guilty of anti-competitive behaviour.

"Unannounced inspections are a preliminary step in investigations into suspected cartels. The fact that the Commission carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour; nor does it prejudge the outcome of the investigation," the statement continued.

Shares in financial information publisher Euromoney Institutional Investor fell on Monday after the firm announced that its offices had been inspected by European authorities.

Euromoney confirmed that the European Commission was conducting an unannounced inspection at the Brussels office of its RISI business, a subsidiary that provides independent information to the paper and packaging market.

"RISI is committed to working fully with the Commission during this process," a statement from Euromoney said.