Partial court victory for Michelin in fight against EU cartel dawn raids

By Foo Yun Chee

BRUSSELS (Reuters) -French tyre maker Michelin won a partial court victory against the EU on Wednesday against last year's dawn raids looking into a possible cartel, a decision that could reduce the scope of the Commission's investigation and any potential fines.

Europe's second-highest court said EU antitrust regulators did not have enough evidence for part of the duration of the alleged price fixing and cannot use any information seized covering that time period.

The Court did not specify which time period, nor did the Commission in its 2024 statement announcing the raids.

Michelin and the Commission did not immediately respond to emailed requests for comment.

Michelin, together with Italy's Pirelli, Germany's Continental and Finland's Nokian Tyres was part of a group of tyre manufacturers raided by the European Commission on suspicion of breaching EU rules against cartels.

The raids targeted the companies' offices and several executives, while regulators also copied the contents of computers, phones and tablets.

The investigation is ongoing and will likely take years to conclude. Fines for operating a cartel in the EU can be as much as 10% of a company's global annual revenue.

Michelin's fight is an example of a growing willingness to challenge EU regulators. In February, U.S. chipmaker Nvidia sued regulators, alleging they overstepped their merger powers in its acquisition of AI startup Run:ai, even though they did secure the EU's green light for the deal in the end.

Luxembourg's largest brewery Brasserie Nationale lost a court challenge in July against EU scrutiny of its proposed acquisition of wholesale drinks distributor Boissons Heintz.

Michelin had argued in its case that the EU competition enforcer lacked justification for its raids.

The Court partly backed Michelin.

"The Commission had sufficiently serious evidence only concerning the suspected coordination during the main period, but not for the earlier period referred to in the contested decision, which must therefore be partially annulled," judges at the Luxembourg-based General Court said.

Michelin and the Commission can appeal on matters of law to the Court of Justice of the European Union (CJEU).

The case is T-188/24 Compagnie générale des établissements Michelin v Commission.

(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)