EU closes investigation on fertilizer market-sharing case

In September 2019, the Spanish competition authority (Comisión Nacional de los Mercados y la Competencia, or CNMC) launched an investigation concerning alleged restrictive conducts between manufacturers of fertilizers. In particular, the CNMC investigated the existence of agreements or concerted practices among manufacturers of nitrogen fertilizers, including the allocation of quotas to distributors and of geographical areas within Spain. The investigation included unannounced inspections in the premises of several companies.

In February 2021, the Directorate for Competition of the European Commission (DG COMP) requested information to the CNMC under art. 12 of the Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles [101] and [102] of the Treaty (Regulation 1/2003). The DG COMP requested information to incorporate it to its own investigation over a suspected cartel agreement under art. 101 of the Treaty on the Functioning of the EU.

In June 2024, in light of DG COMP’s investigation, the CNMC formally decided to close its file on the basis of its lack of jurisdiction. Later, also in June 2024, the DG COMP seems to have close its investigation on the basis of prioritization of its resources or policy considerations (or both).

It is uncertain whether the CNMC will decide to (re)take its investigation on the same practices, a scenario which cannot completely be ruled out. In this regard, the DG COMP did not open any formal proceedings —which, under art. 11(6) of Regulation 1/2003, would “relieve the competition authorities of Member States of their competence to apply Articles [101] and [102] of the Treaty”—, neither has adopted —to date— any formal position or decision to close the case on the basis of a substantive assessment.