The European Commission has opened a formal antitrust investigation into whether Swiss-based Omya broke EU competition rules by requiring paper industry customers to buy all or most of their calcium carbonates from the company.
Omya is the largest supplier of calcium carbonates in the European Economic Area and may hold a dominant position in their supply, the Commission noted in a release on Friday.
Calcium carbonates are used in paper manufacturing as fillers and coating pigments — materials added to paper to help lower production costs and affect properties such as brightness, opacity, smoothness and printability.
The Commission is examining whether Omya may have abused a dominant position through two types of conduct: exclusive purchasing obligations that require customers to buy all or most of their calcium carbonates from Omya, and “exclusivity rebates” that offer financial incentives to do the same.
Officials said they were concerned the practices may have limited the ability of other calcium carbonate suppliers to compete for customers in the European paper industry.
What happens next
The inquiry will assess whether the conduct, if proven, breaches Article 102 of the Treaty on the Functioning of the European Union and Article 54 of the EEA Agreement, which prohibit the abuse of a dominant position.
The Commission said it would carry out an in-depth investigation “as a matter of priority” and stressed that opening proceedings does not prejudge the outcome.
There is no legal deadline for concluding an antitrust investigation, and the duration can depend on factors including the complexity of the case and the extent of cooperation from the companies involved.
Calcium carbonates are “key to Europe’s paper and cardboard industry”, Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just and Competitive Transition, said in the statement.
