European Commission closes antitrust investigation into wood pulp sector

19 Jun 2023 --- The European Commission (EC) has ended its antitrust investigation in the wood pulp sector initiated in October 2021. Major fiber-based packaging producers, including Stora Enso, UPM and Metsä Fibre Oy, a subsidiary of Metsäliitto Cooperative, announced that the companies received unannounced inspections and were a part of the investigation.

“The commission had concerns that the companies involved 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),” EC has published after closing the investigation.

“After a thorough analysis and careful assessment of all the evidence gathered, the commission has concluded that there is insufficient ground to further pursue the investigation. The closure of the investigation is not a finding that the conduct in question complies with EU competition rules.”

Antitrust rules prohibit agreements between market operators that would restrict competition, and the abuse of dominance.

Packaging Insights reached out to the three companies and the EC but received no further comments on the matter.The EC began its antitrust investigation in the wood pulp sector in October 2021.

Back when the investigation was launched, the EC clarified that unannounced inspections are a preliminary step in an investigation into suspected anticompetitive practices. “The fact that the EC 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,” it said. 

Fair game
Last year, EC imposed a fine collectively totaling €31.5 million (~US$31.5 million) on metal packaging giants Crown and Silgan for participating in a cartel that broke EU antitrust laws through sales of metal cans and closures in Germany. 

The products concerned by the cartel were metal closures and cans coated with Bisphenol A (BPA)-free lacquers or BPA-containing lacquers that are predominantly used to close glass jars containing foods such as marmalade, vegetables, fruit, meat or fish. 

Additionally, this March, Packaging Insights’ sister platform Personal Care Insights reported about the EU, UK and Swiss authorities launching an antitrust probe on the fragrance industry which included unannounced inspections at dawn on the premises of Symrise, Givaudan, Firmenich and International Flavours & Fragrances.

By Radhika Sikaria