European Commission opens antitrust probe into Omya calcium carbonate supply practices

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EU probe into Omya supply

Highlights

European Commission has opened a formal antitrust investigation into Omya over alleged exclusionary practices in the European calcium carbonate market.
Probe focuses on Omya's exclusivity terms and rebates that may require customers to purchase all or most calcium carbonates exclusively from Omya.
Commission concerns center on potential limitation of rival suppliers in the paper industry, affecting input costs and competition for European paper and packaging manufacturers.

Investigation focuses on exclusivity terms

According to European Commission, the formal investigation is assessing whether Omya, the largest supplier of calcium carbonates in the European Economic Area and a company headquartered in Switzerland, has breached EU competition rules through potentially exclusionary conduct.

The Commission is examining whether Omya may hold a dominant position in the supply of calcium carbonates and whether it may have abused that position by requiring customers to buy all or most of their needs from the company. It is also investigating exclusivity rebates that may give customers financial incentives to source all or most of their calcium carbonates from Omya.

Calcium carbonates are an important input in paper manufacturing, where they are used as fillers and coating pigments. Their use can reduce production costs and improve brightness, opacity, smoothness and printability in paper and cardboard products.

Potential impact on paper and packaging markets

The Commission says it is concerned that the practices under review may have limited the ability of rival calcium carbonate suppliers to compete effectively for customers in the European paper industry. If proven, the conduct may amount to an abuse of a dominant position under EU competition rules.

Affordable and competitive supplies of calcium carbonates are significant for paper mills because they can lower input costs and support downstream products used by consumers, including packaging. The issue carries broader relevance as Europe increasingly relies on paper and cardboard products as substitutes for single-use plastic packaging.

The Commission says it will carry out an in-depth investigation as a priority, while stressing that the opening of formal proceedings does not prejudge the outcome.

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