D. Dąbrowski: The Commission Investigates a Possible Cartel Among Artificial Turf Sellers – Conclusions and Observations

The European Commission recently announced that it had issued charges against several companies from Germany, the Netherlands, and Belgium operating in the artificial turf sector for sports fields. According to the Commission, two agreements restricting competition were allegedly concluded—one in the Netherlands and one in Germany. An interesting aspect of these cases is the Commission’s assessment regarding the exchange of information, as well as the scope of permissible cooperation within a joint venture.

The first of the agreements involves a recycling company in which three of the aforementioned businesses held shares. According to the Commission, they agreed not to compete with that company in the field of recycling, to use only its recycling services, and to set its prices in a way that restricted competition among its shareholders while creating unfavorable conditions for third parties. Furthermore, there is a suspicion that the companies entered into a further agreement aimed at excluding providers of sustainable waste disposal services.

The second agreement detected by the Commission allegedly involved the exchange of confidential and strategic information by the companies regarding their current and future prices and production capacities. The exchange of information took place in the context of the companies’ planned cooperation, including a possible mutual acquisition of shares. As the Commission noted, the exchange of information took place without any safeguards that would have limited it to the necessary scope. Furthermore, in a subsequent phase of these discussions, the two companies agreed among themselves on the main component of the price for recycling used artificial turf in Germany.

A link to the Commission’s press release

Waste management is—due to the regulatory environment, technological progress, and consumer trends—a rapidly growing sector of the economy. It is also often an area where businesses engage in various forms of cooperation, including through companies established specifically for this purpose. The cases described above serve as a reminder that competition law standards remain a key factor that should be taken into account when establishing the terms of cooperation, particularly if such cooperation involves the exchange of data between competitors. In such scenarios, implementing appropriate safeguards governing interactions between businesses is extremely important and can provide fundamental protection against the risk of violating competition law. It is best to agree on data-sharing arrangements at the very beginning of the relationship and to review them periodically to mitigate risk.