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The Competition Council Discontinues Investigation on the Alleged Infringement By Cemex Ltd. in the Transport-Concrete Market



On 26 February 2010 the Competition Council adopted decision to discontinue the investigation on the alleged abuse of a dominant position by a producer of grey cement, Cemex Ltd. Due to the economic slowdown, the decline in market volume and strong competition, CC found no grounds to establish that Cemex Ltd. abused its dominant position on the gray cement wholesale market with the effect of eliminating of competition in the transport-concrete market.

Cemex Ltd. is owned by the Mexican company Cemex, which is one of the leading cement producers in the world with subsidiaries in several countries. Investigation was started in 2008 after having received a complaint from one of the competitors.

Although infringement was not established, the decision states, that Cemex Ltd. has a dominant position on the grey cement wholesale market. This offers advantages on the downstream market of transport-concrete, which uses grey cement in the production. Such position could allow Cemex Ltd. to engage in predatory pricing on the transport-concrete market, by compensating incurred loses from revenues generated on the grey cement wholesale market.

CC stated, that Cemex Ltd. has 'special responsibility' not to distort competition on the transportconcrete market, in particular with its pricing policy, and not to harm consumer interests. Cemex Ltd. has to realize, that long-term below cost pricing with the effect of eliminating competition in the transport-concrete market could lead to an infringement of the Competition Law.