Reuters reported that Rio Tinto Alcan has offered more flexible licensing terms for rivals to end an antitrust investigation and avert a possible fine.

The European Commission said that it had been investigating the issue following a 2008 merger which created Rio Tinto Alcan, a unit of Anglo Australian mining company Rio Tinto.

The EU antitrust watchdog said it was concerned Rio Tinto Alcan's practice of contractually tying the licences of its AP aluminium smelting technology to the purchase of aluminium smelter equipment supplied by a subsidiary may have breached EU rules. AP aluminium smelting technology reduces energy consumption in aluminium production.

The Commission said that to address these concerns, Rio Tinto Alcan offered to modify its AP technology transfer agreements so as to enable the licensees of the AP aluminium smelting technology to choose any supplier who’s PTAs meet certain technical specifications. A market test would show whether rivals and other interested parties feel the proposal is sufficient.

It said that if the market test confirms that the proposed commitments remedy the competition concerns, the Commission may make the commitments legally binding on Rio Tinto Alcan. The EU executive can fine companies up to 10% of their global turnover if they are found guilty of violating EU rules.

Source - Reuters

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