The European Commission (EC) has confirmed reports that its officials carried out unannounced inspections on the premises of companies active in ethylene purchasing in mid-May. The dawn raids targeted buyers of the feedstocks in several EU member states, it said.

Swiss specialty chemicals producer Clariant told news agencies in response to questioning that it had been visited on May 16 and US chemical producer Celanese confirmed that some of its European units had been visited.                              

The Commission said it has concerns that the ethylene buyers may have violated EU antitrust rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union), which would mean agreeing fixed prices.

On their visits, the EU officials were accompanied by their counterparts from the relevant national competition authorities.

Unannounced inspections “are a preliminary step into suspected anticompetitive practices,” the Brussels competition watchdog said.” The fact that the Commission carries out such inspections does not mean that the companies are guilty of anti-competitive behavior nor does it prejudge the outcome of the investigation itself.”

Beyond the brief remarks, neither the EC nor the companies involved commented further on the raids.

Similar action has been taken by the EU numerous time in the past when suspicions of price fixing either by buyers or sellers arose. In some cases, significant fines have been imposed. For breaching antitrust rules, the EU can fine companies as much as 10% of their global sales.