EU investigates alleged anticompetitive behaviour by kraft paper companies

The European Commission confirmed on Tuesday that it carried out unannounced inspections at the premises of several companies in member states that are active in the kraft paper and industrial paper sacks sector to investigate alleged anticompetitive behaviour

It is concerned “that the relevant companies may have violated Article 101 of the Treaty on the Functioning of the European Union, which prohibits anticompetitive practices such as price fixing and customer allocation”.

These inspections are part of the same investigation that led it the Commission to carry out unannounced inspections in March 2016 in the same sectors.

Meanwhile, paper and packaging company Mondi said on Tuesday that the Commission is conducting an inspection at its office in Vienna.

Mondi, which is dual listed in London and South Africa, said that it is “fully cooperating with the investigation” and that it is “committed to complying with all applicable competition laws and is not aware of any wrongdoing or contravention of the relevant legislation”.

Unannounced inspections are a first step into suspected anticompetitive practices and the Commission stressed that just because it had carried out inspections it “does not mean that the companies are guilty of anti-competitive behaviour nor does it prejudge the outcome of the investigation”.

It said that it respects the rights of defence, in particular the right of companies to be heard in antitrust proceedings

There is no legal deadline to complete investigations into anticompetitive behaviour and it would depend on a number of factors such as complexity, co-operation and the rights of defence.