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Investigation Brings Warning for TRW

Supplier facing trans-Atlantic probe.

by on Jul.13, 2011

TRW Automotive faces antitrust investigations in both the U.S. and European Union, it revealed.

Auto parts giant TRW Automotive Holdings Corp. is warning it could face financial penalties stemming from investigations into anti-competitive practices now underway by regulators in both the European Union and the United States.

The warning comes as EU and US regulators ramp up an investigation into anti-competitive practices that began in 2009, during the depths of the global automotive downturn.  Critics have contended that some major suppliers used the shake-out of weaker vendors to not just lock down more business but ensure they could drive up prices for raw materials, parts and more complex component systems.

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“Competition and antitrust law investigations often continue for several years and can result in significant penalties being imposed by the European authorities as well as the U.S. Department of Justice, as is evidenced by the significant fines the European Commission has imposed, in some cases, for violations in other sectors, TRW said in a statement this week.