EU accuses Sika, Mapei and other construction chemical makers of price coordination
The European Commission has issued statements of objections over alleged coordination of construction chemical price increases in Spain, France and Germany during 2021 and 2022. Companies including Sika, Mapei and Master Builders Solutions could face fines of up to 10% of annual worldwide turnover if the preliminary findings are confirmed.
Commission sends objections in three national cases
The European Commission has formally notified construction chemical manufacturers and industry associations of its preliminary finding that they coordinated future price increases in Spain, France and Germany. The alleged conduct concerned chemical additives and admixtures used in cement, concrete and mortar and took place during 2021 and 2022.
According to El Español, the Spanish statement of objections covers five manufacturers—Chryso, Mapei, Master Builders Solutions, MC Bauchemie and Sika—as well as the industry association ANFAH. A separate French case names Cemex, Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika and TAM, together with the trade association SYNAD.
In Germany, the Commission identified Cemex, Ha-be, Mapei, Master Builders Solutions, MC Bauchemie, Liesen, Remei and Sika, alongside Deutsche Bauchemie. Mapei, Master Builders Solutions, MC Bauchemie and Sika therefore appear in all three national proceedings, while the other companies vary by market.
Press releases are central to the allegations
The Commission’s preliminary view is that the manufacturers used the preparation of press releases through national trade associations to coordinate forthcoming price increases and explain them as a response to higher raw-material costs. Börse Online, citing dpa-AFX, reported that those costs had risen amid the Covid-19 pandemic and Russia’s attack on Ukraine.
The allegations concern inputs with a direct role in construction performance and costs. The Commission says cement additives are mainly used to improve manufacturing processes and cement performance. Chemical admixtures are added to concrete and mortar to improve performance, durability and workability. Changes in the prices of these ingredients can therefore feed into the cost of cement, concrete and mortar and ultimately affect construction budgets.
The case remains at a preliminary stage. Statements of objections do not constitute a final finding of infringement, and the companies and associations may examine the case against them, respond to the allegations and present their own arguments. The Commission has not disclosed a timetable for a final decision.
Potential penalties linked to worldwide turnover
If the Commission concludes that EU competition rules were breached, it may prohibit the conduct and impose fines of up to 10% of each company’s annual worldwide turnover. The potential exposure is therefore tied to the global scale of each business rather than only to sales of the products or activity under investigation in Spain, France and Germany.
The investigation began on 17 October 2023, when Commission officials conducted unannounced inspections at construction chemical companies in several EU member states, according to El Español. There is no statutory deadline for completing an antitrust investigation. Its duration can depend on the complexity of the case, the companies’ level of cooperation and the exercise of their rights of defence.
For cement, concrete and mortar producers, the proceedings put pricing practices for performance-enhancing inputs under closer scrutiny. Contractors and other buyers will also be watching whether the case changes how suppliers communicate cost-driven increases through trade associations. Until the Commission reaches a final decision, however, the alleged coordination remains unproven.
