It is reported that Germany industry urged the European Commission to reject a tie up of mining giants BHP Billiton and Rio Tinto and warned that steelmakers were curbing competition in the European market.

As per report, seven industrial federations sent a letter to the Commission calling for more competition in the markets for iron ore and coke needed to produce steel, saying a combination of the Australian and Anglo US mining groups would undermine such a development.

The letter sent by federations representing the auto, machine tool, electronic, shipbuilding, construction, metal and public works sectors said that "We call therefore on the European Commission not to approve a fusion between the BHP Billiton and Rio Tinto companies.”

The letter also said that “Attempts by European groups to increase prices on flat steel products are not justified criticizing sustained weak competition on European steel markets." It added that "The trend in steel prices is cause for concern and presented incalculable risks for German industry.”

Europe's top antitrust watchdog opened an in depth antitrust probe last week into BHP's hostile takeover of Rio Tinto owing to concern the deal could stifle competition amid soaring commodities prices. But the German federations also said European steelmakers kept prices at artificially high levels and prevented competition as well.