The European Commission has closed an antitrust investigation into alleged anticompetitive behaviour by Pratt & Whitney Canada Corp. (‘Pratt & Whitney’), the main supplier in the European Economic Area (‘EEA’) of turboprop aircraft engines. The closure of the investigation follows the company’s amendment of contractual clauses, which removes possible obstacles to access to critical input and services faced by spare parts suppliers. Spare parts are sold to customers in the EEA for the repair and maintenance of engines.

The Commission investigated whether Pratt & Whitney may have been foreclosing access to critical input and services needed by spare part suppliers, so-called used serviceable material (‘USM’) suppliers, for certain turboprop aircraft engines. USM suppliers need access to used engine cores to tear them down and replenish their stock of spare parts. They also need access to certification services that attest that a spare part is airworthy and can be reused. By limiting the ability of maintenance shops in their network to sell used engine cores or provide certification services to USM suppliers, Pratt & Whitney may have restricted competition from independent USM suppliers. Following exchanges with the Commission, Pratt & Whitney amended its agreements to remove these restrictions and clarified that maintenance shops are not prevented from buying USM from other suppliers.

After thorough analysis and assessment of evidence, and considering the changes and clarifications made by Pratt & Whitney to its contractual clauses, the Commission concluded that the investigated concerns have been addressed. Further action is no longer considered a priority at EU level. Pratt & Whitney has made a public announcement on its website highlighting the changes made to its contractual clauses.

The closure of the investigation is not a finding that the conduct in question complied with EU competition rules.

Share this article: