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EU Court Dismisses ALROSA's Appeal of De Beers Supply Ban

Jun 29, 2010 6:03 AM   By Avi Krawitz
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RAPAPORT... The European Union's (EU) Court of Justice on Tuesday upheld a previous ruling forcing De Beers to stop all diamond purchases from ALROSA.

De Beers and ALROSA, the top two diamond producers, respectively, were involved in a supply agreement dating back to 2002, under which ALROSA agreed to supply $800 million worth of diamonds each year to De Beers for five years. After the European Commission expressed concerns that the deal could lead to a monopoly, De Beers agreed in 2006 to gradually reduce its buying and ceased all purchases in 2008, which the Commission adopted as a regulatory decision.

ALROSA appealed this decision on the grounds that the Commission had not respected ALROSA’s right to be heard on the individual commitments offered by De Beers and the General Court annulled the commission’s decision in July 2007.

In Tuesday’s ruling, however, the Court of Justice said ALROSA’s argument that its right to be heard had not been observed could not be validated.

“ALROSA has not shown that the individual commitments offered by De Beers and made binding by the Commission manifestly went beyond what was necessary to address the concerns expressed by the commission in its primary assessment,” the court stated. “The court, therefore, dismisses ALROSA’s application and upholds the Commission’s decision.”
Tags: Avi Krawitz, Alrosa, Avi Krawitz, De Beers, European Union
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