Top tire manufacturers including Pirelli, Continental, Michelin, and Nokian Tyres faced scrutiny on Tuesday as EU antitrust regulators launched raids, sparking a downturn in their shares. The European Commission initiated investigations into potential cartel activities across multiple EU countries, focusing on the sale of replacement tires in the European Economic Area.
While companies like Pirelli emphasized their commitment to compliance and cooperation, the raids sent shockwaves through the industry, with shares tumbling by as much as 3.8% before temporary suspensions.
The EU watchdog expressed concerns about price coordination among the inspected firms, highlighting the potential breach of competition rules. If found guilty, companies could face fines of up to 10% of their global turnover.
This move underscores the EU’s commitment to fair market practices and follows a series of previous fines imposed on cartels within the automotive industry. As investigations continue, the implications for these tire giants remain uncertain.