Tire makers in several European countries, including Continental AG, were the subject of surprise inspections Tuesday by the European Commission, which is concerned that they may have colluded with each other to fix prices in violation of European competition rules, Bloomberg writes.

• “The products targeted by the inspections are new tires for cars, vans, trucks and buses sold in the European Economic Area.
• The commission is concerned that price policy coordination took place between the audited companies, including through public communications,” said the press release of the community’s executive body.

The European Commission does not disclose the names of the audited companies. However, the German group Continental published a statement in which it announced that it had become the object of an investigation by the European Commission. Immediately after the announcement, Continental shares fell 2.8% on the Frankfurt Stock Exchange, while the main Frankfurt Stock Exchange index rose.

Such inspections are only a preliminary step, and the EU can open formal proceedings if the evidence collected shows that the firms have violated antitrust laws. A company found guilty of violating European competition law can be fined up to 10% of its global turnover, but fined companies can challenge the fines in EU courts. (Source: Agerpres)