Earlier this week the General Court partially annulled the Commission’s dawn raid order against Michelin, ruling that the Commission did not have enough evidence for part of the duration of the alleged price fixing cartel to conduct a dawn raid.

The case concerns a legal challenge by Michelin against a dawn raid carried out by the Commission on its premises on 30 January 2024. The Commission suspected Michelin of participating in a price fixing cartel with other tyre manufacturers for replacement tyres for cars and trucks in the EEA. Michelin argued the Commission’s decision lacked proper reasoning and infringed its fundamental rights. It is on the first grounds that Michelin scored a partial victory.

The General Court largely sided with the Commission, confirming that the 𝐢𝐧𝐬𝐩𝐞𝐜𝐭𝐢𝐨𝐧 𝐰𝐚𝐬 𝐣𝐮𝐬𝐭𝐢𝐟𝐢𝐞𝐝 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐦𝐚𝐢𝐧 𝐩𝐞𝐫𝐢𝐨𝐝 under investigation. The Court found that for that period the Commission had sufficiently serious indications of a potential anti-competitive conduct.

However, the Court 𝐚𝐧𝐧𝐮𝐥𝐥𝐞𝐝 𝐭𝐡𝐞 𝐝𝐚𝐰𝐧 𝐫𝐚𝐢𝐝 𝐨𝐫𝐝𝐞𝐫 𝐟𝐨𝐫 𝐚𝐧 𝐞𝐚𝐫𝐥𝐢𝐞𝐫 𝐩𝐞𝐫𝐢𝐨𝐝, ruling that there was insufficient evidence to suggest that a suspected price fixing cartel existed during that earlier period. The mere plausibility that the tyre manufacturers engaged in a price fixing cartel for the earlier period as well was not sufficient. This decision of the General Court narrows the scope of the Commission’s investigation, as the Commission cannot use any information seized covering that earlier time period.

🚨 This judgment underlines once again the importance for companies to closely scrutinise the dawn raid order when being confronted with a competition authority at their doorstep. It is also a reminder for competition authorities to carefully assess whether there are sufficiently serious indications of an alleged infringement before carrying out a dawn raid.

𝐌𝐨𝐫𝐞 𝐢𝐧𝐟𝐨? Read the full text of the judgment (only in French) here: https://lnkd.in/eycihATQ.

𝐀𝐧𝐲 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬? Please do not hesitate to get in contact.

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