Commission opens investigation into possible anticompetitive conduct by Omya in the supply of calcium carbonates to the paper industry

The European Commission has opened a formal antitrust investigation to assess whether Omya has breached EU competition rules by requiring customers in the paper industry to purchase all or most of their calcium carbonates from Omya.

Omya, headquartered in Switzerland, is the largest supplier of calcium carbonates in the European Economic Area ('EEA') and may hold a dominant position in their supply. Calcium carbonates are an important input in the paper manufacturing process. They are widely used as fillers and as coating pigments in paper production, where they can reduce production costs and improve the brightness, opacity, smoothness and printability of paper and cardboard.

The Commission is investigating whether Omya may have abused a dominant position in the supply of calcium carbonates, in particular by pursuing an exclusionary strategy through two types of practices:

• exclusive purchasing obligations, requiring its customers to purchase all or most of their calcium carbonates from Omya; and
• exclusivity rebates, providing customers with financial incentives to source all or most of their calcium carbonates from Omya.

The Commission is concerned that these practices may have limited the ability of other suppliers of calcium carbonates to effectively compete for customers in the European paper industry.

Competitive and affordable supplies of calcium carbonates are important for the industry because these can reduce input costs for paper mills and ultimately benefit consumers of paper and cardboard products, including packaging products that are increasingly used as alternatives to single-use plastic packaging.

If proven, the practices under investigation may breach EU competition rules that prohibit the abuse of a dominant position (Article 102 of the Treaty on the Functioning of the European Union ('TFEU')) and Article 54 of the EEA Agreement.

The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.

Background

Article 102 TFEU and Article 54 of the EEA Agreement prohibit the abuse of a dominant position that may affect trade and prevent or restrict competition within the Single Market. The implementation of Article 102 TFEU is defined in Regulation 1/2003.

Article 11(6) of Regulation 1/2003 provides that the opening of proceedings by the Commission relieves the competition authorities of the Member States of their competence to apply EU competition rules to the practices concerned. Article 16(1) further provides that national courts must avoid adopting decisions which would conflict with a decision contemplated by the Commission in proceedings it has initiated.

There is no legal deadline for bringing an antitrust investigation to an end. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the parties' exercise of the rights of defense.

For more information

More information on the investigation will be available on the Commission's competition website, in the public case register under the case number AT.40893.