The European Commission said 30 August 2007 that it was looking into allegations of a lack of competition in the glass bottle manufacturing sector leading to price rises. In a letter to antitrust comm…
The European Commission said 30 August 2007 that it was looking into allegations of a lack of competition in the glass bottle manufacturing sector leading to price rises. In a letter to antitrust commissioner Neelie Kroes, the European Federation of Wine and Spirits Importers and Distributors (EFWSID) said it was concerned that concentration in the glass bottle manufacturing sector was affecting prices and impeding competition. Prices of glass bottles have increased up to 30% over the past few months, due to lack of competition in the market and the discontinuation of older, and often cheaper, bottle models. “We will have a close look at the allegations made in the letter”, said competition spokesman Jonathan Todd in the commission“s daily press briefing, confirming that Ms. Kroes received the missive on 28 August 2007. In the letter, the Federation said the glass sector had become “highly concentrated over the past few years, to the point we now face a virtual monopoly of suppliers among whom there is no longer any competition”. In a separate letter to the competition authorities, the Belgian Federation of Wine and Spirits, a member of the EFWSID, said that more than 95% of the European glass bottle market was held by three companies: France“s Saint-Gobain, Owens-Illinois (OI) of the US and Ardagh Glass of Ireland. Saint Gobain declined to comment on the allegations, while Owens-Illinois was unavailable. Ardagh spokesman said that the company was “aware of the situation” but could not comment further on it at the moment.