BRUSSELS-European Union regulators filed formal charges Tuesday
against Honeywell International Inc. and DuPont Co. over their
agreements to produce the only car coolant that meets new EU rules
on greenhouse-gas emissions.
The European Commission, the EU's top antitrust regulator, said
deals between the two companies to produce the chemical, known as
R-1234yf, "may have limited its availability and technical
development, in breach of EU antitrust rules."
The move steps up a probe opened in 2011 that targeted Honeywell
and DuPont's pact to produce a new refrigerant for vehicle
air-conditioning systems, which was developed to replace a
refrigerant that had fallen foul of new EU anti-global warming
rules.
If the companies are found guilty of illegal collusion, they
could face fines of up to 10% of annual sales.
The decision to send a so-called statement of objections doesn't
prejudge the final outcome of its investigation, the commission
said in a statement.
Honeywell said the EU's allegations were "baseless and conflict
with the EU's own laws that encourage collaboration on
development." The company has said it is targeting $1.5 billion of
revenue from the chemical over five years.
DuPont said it had "complied at all times with applicable laws"
in the development of the chemical, and would defend itself
vigorously.
The EU had also been examining whether Honeywell engaged in
"deceptive conduct" during the evaluation of 1234yf between 2007
and 2009. When it opened its probe in 2011, the commission said
Honeywell may have failed to disclose its patents while the
refrigerant was being assessed and failed to grant licenses on
"fair and reasonable terms."
Write to Tom Fairless at tom.fairless@wsj.com
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