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Image header Agence Europe
Europe Daily Bulletin No. 9609
Contents Publication in full By article 19 / 33
GENERAL NEWS / (eu) eu/competition

Aluminium producer Alcan suspected of abuse of dominant position

Brussels, 25/02/2008 (Agence Europe) - On Monday 25 February 2008, the European Commission confirmed that it had sent a statement of objections to the Canadian aluminium producer Alcan, for suspected abuse of dominant position. The Commission has reason to believe that a subsidiary of the world number one has connected sales of two types of material for aluminium smelters, a practice banned under article 82 of the EC Treaty.

Alcan has occupied the world number one position for the production of aluminium since its purchase of the multinational Rio Tinto and the subsequent merger of its aluminium-producing activities with those of the latter. A subsidiary of Alcan, ECL, sells materials to aluminium smelters. It has been accused by the Commission of forcing buyers of this material also to buy handling equipment for the smelting “pots”, in particular “Pot Tending Assemblies”. In a press release of 25 February, the Commission took pains to point out that this “linked sale” “might significantly harm its customers and ultimately end-users of aluminium, through reduction in innovation and likely negative impact on aluminium prices”. Alcan, which denies any wrongdoing, now has eight weeks to reply to the Commission, after which the latter may decide to fine the company up to 10% of its turnover. By virtue of Community rules, Alcan bears responsibility for all companies under its control. (C.D.)

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