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Brussels, |
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EU Competition Policy
Manufacturing & Basic Industries
Manufacturing and basic industries form the productive backbone of the European economy. They include mining, construction materials, steel, cement, chemicals, motor vehicles, machinery, aluminium, industrial components and a wide range of intermediate and finished products.
These sectors are essential to employment, investment, infrastructure, international trade and the functioning of European supply chains. They are also undergoing a profound transformation driven by decarbonisation, digitalisation, automation, circular production and the need to strengthen Europe’s economic security.
EU competition policy seeks to ensure that this transformation takes place through open and competitive markets, while allowing public authorities to support strategic investments where justified.
The role of competition policy
Competition policy applies across the entire industrial value chain, from raw-material extraction and basic production to manufacturing, distribution, recycling and after-sales services.
The European Commission may intervene through:
The objective is to prevent companies from coordinating prices, dividing markets, excluding competitors or using market power to restrict access to essential materials, technologies and distribution channels.
Competition enforcement has covered numerous industrial activities, including speciality chemicals, metal recycling, pigments, automatic doors, aluminium products and motor-vehicle components.
Cartels and anticompetitive agreements
Industrial markets can be particularly vulnerable to cartel behaviour because they often involve a limited number of producers, standardised products, high barriers to entry and repeated commercial interactions.
Cartels may involve:
These practices can increase prices, reduce innovation and weaken the competitiveness of downstream companies that depend on industrial inputs.
The automotive sector has been a significant area of enforcement, including investigations involving brakes, airbags, seatbelts, steering-wheel components and other car parts. The Commission has also examined conduct concerning vehicle-emissions technology and the recycling of automotive batteries.
Businesses can consult the Commission’s information on cartel cases and statistics and use its whistleblower tools to report suspected infringements.
Merger control in industrial markets
Manufacturing industries continue to consolidate as companies seek economies of scale, access to technology, control over raw materials and stronger positions in global markets.
The European Commission examines mergers and acquisitions that could significantly reduce competition within the European Economic Area.
Its assessment may consider:
A transaction may be approved, prohibited or authorised subject to commitments such as the sale of business units, production facilities, licences or other assets.
Relevant decisions can be followed through the EU Competition Case Search.
Automotive manufacturing and mobility
The automotive industry is one of Europe’s most important industrial sectors and includes vehicle manufacturers, component suppliers, battery producers, software providers, repair networks and recycling operators.
Competition issues may arise in relation to:
The transition to electric, connected and software-defined vehicles is creating new markets and new forms of dependency. Access to batteries, semiconductors, software, vehicle-generated data and charging networks is increasingly important for effective competition.
EU competition rules must ensure that cooperation needed for the green and digital transition does not become a vehicle for excluding competitors or coordinating commercial behaviour.
Chemicals and industrial materials
Chemicals and industrial materials are used throughout European manufacturing, construction, agriculture, healthcare and consumer-goods production.
Competition cases may concern:
Concentration in these markets can have significant effects on downstream industries because even small price increases in essential materials may be transmitted across entire supply chains.
Competition policy therefore examines not only direct effects on industrial customers but also the consequences for investment, innovation and final consumers.
Critical raw materials and resilient supply chains
Access to critical raw materials is essential for renewable energy, batteries, semiconductors, digital technologies, aerospace, defence and advanced manufacturing.
Europe’s dependence on external suppliers can create economic and strategic vulnerabilities. The EU is therefore seeking to diversify supply, develop domestic extraction and processing capacity, improve recycling and support alternative materials.
The Commission’s work on critical raw materials is closely connected with competition policy.
Competition concerns may arise where companies:
Cooperation between companies may be necessary to develop new supply chains, but agreements must remain proportionate and compatible with EU competition rules.
State aid for industrial transformation
Public support plays an important role in helping European industry invest in decarbonisation, clean technologies, advanced manufacturing and strategic production capacity.
The Commission has authorised aid for projects involving:
State aid control seeks to ensure that public funding addresses genuine market failures without providing unnecessary advantages to selected businesses or encouraging subsidy competition between Member States.
Businesses and public authorities can follow the Commission’s State aid policy and search relevant State aid cases.
Important Projects of Common European Interest
Important Projects of Common European Interest – IPCEIs allow several Member States to jointly support ambitious cross-border projects of strategic importance to the European Union.
IPCEIs may address major technological, industrial or infrastructure challenges that individual companies or countries would be unlikely to undertake alone.
They have been used in fields such as:
Participating projects must generate positive spillovers beyond the companies and Member States receiving support. These benefits may include new knowledge, innovative technologies, infrastructure, skills and strengthened European value chains.
For industrial companies, IPCEIs can provide access to public financing, research partnerships and cross-border industrial ecosystems.
The Clean Industrial Deal and State aid
The EU’s industrial policy increasingly combines decarbonisation with competitiveness, energy security and the expansion of European manufacturing capacity.
The Clean Industrial Deal State Aid Framework enables Member States to support clean energy, industrial decarbonisation and clean-technology manufacturing under defined conditions.
Support may be available for:
For companies, these frameworks may create significant investment opportunities, but eligibility, proportionality and competition safeguards remain essential.
Foreign subsidies and industrial competition
European manufacturers increasingly compete with companies that may receive substantial financial support from non-EU governments.
The Foreign Subsidies Regulation allows the European Commission to investigate foreign financial contributions that may distort competition within the Single Market.
The Regulation can apply to:
The Commission may impose remedies, accept commitments or prohibit transactions and procurement awards where necessary.
This instrument complements EU State aid rules, which apply to support granted by EU Member States.
Sustainability agreements and industrial cooperation
Industrial companies increasingly cooperate on recycling, emissions reduction, circular production, common technical standards and low-carbon technologies.
Such cooperation can accelerate the green transition and reduce investment risks. However, agreements between competitors must not unnecessarily restrict prices, output, innovation or customer choice.
The Commission’s Horizontal Guidelines provide guidance on cooperation agreements, including sustainability initiatives, research and development, specialisation, purchasing and standardisation.
Businesses should assess:
These sectors are essential to employment, investment, infrastructure, international trade and the functioning of European supply chains. They are also undergoing a profound transformation driven by decarbonisation, digitalisation, automation, circular production and the need to strengthen Europe’s economic security.
EU competition policy seeks to ensure that this transformation takes place through open and competitive markets, while allowing public authorities to support strategic investments where justified.
The role of competition policy
Competition policy applies across the entire industrial value chain, from raw-material extraction and basic production to manufacturing, distribution, recycling and after-sales services.
The European Commission may intervene through:
- antitrust and cartel investigations;
- merger control;
- State aid supervision;
- reviews of industrial cooperation agreements;
- action against abuses of dominant positions;
- scrutiny of foreign subsidies affecting the Single Market.
The objective is to prevent companies from coordinating prices, dividing markets, excluding competitors or using market power to restrict access to essential materials, technologies and distribution channels.
Competition enforcement has covered numerous industrial activities, including speciality chemicals, metal recycling, pigments, automatic doors, aluminium products and motor-vehicle components.
Cartels and anticompetitive agreements
Industrial markets can be particularly vulnerable to cartel behaviour because they often involve a limited number of producers, standardised products, high barriers to entry and repeated commercial interactions.
Cartels may involve:
- price fixing;
- customer or market allocation;
- coordination of production volumes;
- bid rigging;
- exchange of commercially sensitive information;
- coordination of surcharges or contractual conditions;
- agreements to delay or restrict new technologies.
These practices can increase prices, reduce innovation and weaken the competitiveness of downstream companies that depend on industrial inputs.
The automotive sector has been a significant area of enforcement, including investigations involving brakes, airbags, seatbelts, steering-wheel components and other car parts. The Commission has also examined conduct concerning vehicle-emissions technology and the recycling of automotive batteries.
Businesses can consult the Commission’s information on cartel cases and statistics and use its whistleblower tools to report suspected infringements.
Merger control in industrial markets
Manufacturing industries continue to consolidate as companies seek economies of scale, access to technology, control over raw materials and stronger positions in global markets.
The European Commission examines mergers and acquisitions that could significantly reduce competition within the European Economic Area.
Its assessment may consider:
- the number and strength of remaining competitors;
- control over essential raw materials or industrial inputs;
- barriers preventing new companies from entering the market;
- access to production capacity, patents and technology;
- the effects on customers and downstream industries;
- the possible elimination of an innovative competitor;
- vertical integration between suppliers and manufacturers;
- the risk of higher prices or reduced product choice.
A transaction may be approved, prohibited or authorised subject to commitments such as the sale of business units, production facilities, licences or other assets.
Relevant decisions can be followed through the EU Competition Case Search.
Automotive manufacturing and mobility
The automotive industry is one of Europe’s most important industrial sectors and includes vehicle manufacturers, component suppliers, battery producers, software providers, repair networks and recycling operators.
Competition issues may arise in relation to:
- automotive components and spare parts;
- access to repair and maintenance information;
- battery production and recycling;
- charging infrastructure;
- cooperation on emissions technologies;
- connected and autonomous vehicle data;
- distribution and after-sales networks;
- mergers between manufacturers or suppliers.
The transition to electric, connected and software-defined vehicles is creating new markets and new forms of dependency. Access to batteries, semiconductors, software, vehicle-generated data and charging networks is increasingly important for effective competition.
EU competition rules must ensure that cooperation needed for the green and digital transition does not become a vehicle for excluding competitors or coordinating commercial behaviour.
Chemicals and industrial materials
Chemicals and industrial materials are used throughout European manufacturing, construction, agriculture, healthcare and consumer-goods production.
Competition cases may concern:
- speciality and basic chemicals;
- pigments and coatings;
- cement, steel, bricks and construction materials;
- aluminium and other metals;
- industrial gases;
- plastics and polymers;
- recycling and secondary raw materials.
Concentration in these markets can have significant effects on downstream industries because even small price increases in essential materials may be transmitted across entire supply chains.
Competition policy therefore examines not only direct effects on industrial customers but also the consequences for investment, innovation and final consumers.
Critical raw materials and resilient supply chains
Access to critical raw materials is essential for renewable energy, batteries, semiconductors, digital technologies, aerospace, defence and advanced manufacturing.
Europe’s dependence on external suppliers can create economic and strategic vulnerabilities. The EU is therefore seeking to diversify supply, develop domestic extraction and processing capacity, improve recycling and support alternative materials.
The Commission’s work on critical raw materials is closely connected with competition policy.
Competition concerns may arise where companies:
- control scarce resources or processing capacity;
- restrict access to essential inputs;
- conclude exclusive supply agreements;
- discriminate between customers;
- acquire emerging competitors or alternative technologies;
- coordinate purchasing or production.
Cooperation between companies may be necessary to develop new supply chains, but agreements must remain proportionate and compatible with EU competition rules.
State aid for industrial transformation
Public support plays an important role in helping European industry invest in decarbonisation, clean technologies, advanced manufacturing and strategic production capacity.
The Commission has authorised aid for projects involving:
- the transition away from mining activities;
- electric vehicles and charging infrastructure;
- low-carbon and green steel production;
- zero-emission industrial facilities;
- batteries and battery value chains;
- semiconductor and microchip production;
- clean technologies and industrial decarbonisation.
State aid control seeks to ensure that public funding addresses genuine market failures without providing unnecessary advantages to selected businesses or encouraging subsidy competition between Member States.
Businesses and public authorities can follow the Commission’s State aid policy and search relevant State aid cases.
Important Projects of Common European Interest
Important Projects of Common European Interest – IPCEIs allow several Member States to jointly support ambitious cross-border projects of strategic importance to the European Union.
IPCEIs may address major technological, industrial or infrastructure challenges that individual companies or countries would be unlikely to undertake alone.
They have been used in fields such as:
- batteries;
- microelectronics and communication technologies;
- hydrogen;
- cloud and digital infrastructure;
- healthcare;
- advanced industrial technologies.
Participating projects must generate positive spillovers beyond the companies and Member States receiving support. These benefits may include new knowledge, innovative technologies, infrastructure, skills and strengthened European value chains.
For industrial companies, IPCEIs can provide access to public financing, research partnerships and cross-border industrial ecosystems.
The Clean Industrial Deal and State aid
The EU’s industrial policy increasingly combines decarbonisation with competitiveness, energy security and the expansion of European manufacturing capacity.
The Clean Industrial Deal State Aid Framework enables Member States to support clean energy, industrial decarbonisation and clean-technology manufacturing under defined conditions.
Support may be available for:
- renewable and low-carbon energy;
- industrial electrification;
- decarbonisation of production processes;
- clean-technology manufacturing capacity;
- measures reducing energy costs for qualifying industries;
- private investment in clean and strategic projects.
For companies, these frameworks may create significant investment opportunities, but eligibility, proportionality and competition safeguards remain essential.
Foreign subsidies and industrial competition
European manufacturers increasingly compete with companies that may receive substantial financial support from non-EU governments.
The Foreign Subsidies Regulation allows the European Commission to investigate foreign financial contributions that may distort competition within the Single Market.
The Regulation can apply to:
- mergers and acquisitions;
- public procurement procedures;
- investments and business expansions;
- other market situations involving potentially distortive foreign subsidies.
The Commission may impose remedies, accept commitments or prohibit transactions and procurement awards where necessary.
This instrument complements EU State aid rules, which apply to support granted by EU Member States.
Sustainability agreements and industrial cooperation
Industrial companies increasingly cooperate on recycling, emissions reduction, circular production, common technical standards and low-carbon technologies.
Such cooperation can accelerate the green transition and reduce investment risks. However, agreements between competitors must not unnecessarily restrict prices, output, innovation or customer choice.
The Commission’s Horizontal Guidelines provide guidance on cooperation agreements, including sustainability initiatives, research and development, specialisation, purchasing and standardisation.
Businesses should assess:
- whether cooperation is genuinely necessary;
- whether commercially sensitive information is exchanged;
- whether the agreement excludes other operators;
- whether the benefits are passed on to customers;
- whether restrictions are proportionate to the stated objective.
Manufacturing & Basic Industries Competition Cases
Manufacturers, industrial groups, suppliers, construction companies, investors and public authorities can consult the Commission’s Manufacturing & Basic Industries Cases and Judgments page to follow antitrust investigations, cartel decisions, merger reviews and State aid cases involving mining, raw materials, manufacturing, industrial products and construction.
Why this matters for businesses
Competition-policy developments in manufacturing and basic industries can directly affect investment, production, access to materials, commercial cooperation and public funding.
Industrial companies should monitor:
For manufacturers, suppliers, industrial groups, technology providers and investors, understanding competition policy is essential for managing legal risks and identifying opportunities created by Europe’s green, digital and strategic industrial transformation.
Follow EU competition cases, State aid decisions, merger reviews and industrial-policy developments shaping manufacturing and basic industries in Europe.
Competition-policy developments in manufacturing and basic industries can directly affect investment, production, access to materials, commercial cooperation and public funding.
Industrial companies should monitor:
- cartel and antitrust investigations;
- merger reviews and remedies;
- State aid schemes for industrial transformation;
- IPCEI initiatives and participation opportunities;
- measures supporting clean-technology manufacturing;
- cases involving automotive parts and technologies;
- access to critical raw materials;
- foreign-subsidy investigations;
- sustainability and standardisation agreements;
- consultations and revisions of EU competition rules.
For manufacturers, suppliers, industrial groups, technology providers and investors, understanding competition policy is essential for managing legal risks and identifying opportunities created by Europe’s green, digital and strategic industrial transformation.
Follow EU competition cases, State aid decisions, merger reviews and industrial-policy developments shaping manufacturing and basic industries in Europe.
