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Brussels - The European Commission took action Tuesday against US chemical companies Honeywell and DuPont, on suspicion that they colluded over the production of a disputed car coolant, in breach of EU rules.
Honeywell and DuPont are the only companies to supply the European car industry with refrigerant R-1234yf - the sole product to meet new EU environmental standards.
The coolant is at the centre of a dispute between Brussels and Berlin. Daimler - the maker of Mercedes-Benz cars - is refusing to use it, arguing that it is prone to catching fire in certain circumstances.
In a separate investigation, the EU's executive now suspects the two chemical firms of abusing their unique market position.
"The commission has concerns that a series of agreements concluded between Honeywell and DuPont in 2010 may have hindered competition on the market for R-1234yf," the EU's competition watchdog wrote.
It has been probing the chemical manufacturers since 2011. Initial conclusions show that they are consulting with each other on decisions, resulting in "restrictive effects of competition," the commission said.
Among other things, it suspects that the companies restricted the available quantities of the new refrigerant and imposed limitations on related technical developments. The commission formally shared these concerns with the companies on Tuesday.
Honeywell rejected the allegations, and said the companies had to cooperate over the "costly and risky development" of the coolant to develop it in time to meet new EU environmental rules.
If firms are found to be in breach of EU competition rules, the commission can fine them up to 10% of their annual turnover.
- Sapa-DPA
