Ecoembes to Implement Transparent and Competitive Auction System for Recycling of Packaging Waste
The Spanish competition authority, CNMC, has concluded its investigation into Ecoembes for potential abuse of dominance in its auctions for plastic packaging waste, with Ecoembes agreeing to implement a new electronic auction system to ensure transparency and equal participation.
21.12.2023 | Spanish competition authority
The CNMC initiated a sanctioning procedure against Ecoembes for allegedly impeding equal and transparent participation in its auctions for plastic packaging waste. The case was resolved through a conventional termination, with Ecoembes offering binding commitments to avoid a fine. As part of the commitments, Ecoembes will implement a new electronic auction procedure that will ensure traceability and custody of bids from other companies. The investigation focused on Ecoembes' auction process, which lacked transparency and hindered the entry of other recycling companies into the market. The abuse of dominance in the market is prohibited under Spanish and EU competition law. The CNMC had previously imposed interim measures to address the competition concerns during the investigation. The termination of the case through commitments is an alternative way to resolve competition cases, allowing the alleged infringer to avoid a fine by offering voluntary commitments to address the competition issues.
