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Michelin suspected of abuse of market power

Tire manufacturer Michelin is suspected of abusing its market power in France by the French Ministry of Finance who has given the case to the competition council.

Michelin informed its distributors at the end of 2007 that it would cut commercial advantages to distributors linked directly or indirectly to a rival tire maker, French daily Le Figaro reported.

Le Figaro said tire distributor Vulco, which is linked to Michelin's US rival Goodyear, complained to DGCCRF (the General Directorate for Fair Trading, Consumer Affairs and Fraud Control), a unit of the Ministry of Finance.

The Ministry of Finance and Michelin had no immediate comment. (Reuters)