PAINT PRICE-FIXING PROBE UNDER WAY

Abstract

IN ONE BROAD BRUSH STROKE, Department of Justice has subpoenaed five major automobile refinish paint makers for documents that could show evidence of anticompetitive practices. Details of grand jury investigation under way are sketchy. A Justice spokeswoman would say only that the Antitrust Division is looking at possible anticompetitive practices in auto-refinish industry. But BASF, PPG, DuPont, Akzo Nobel, and Sherwin-Williams acknowledge that they have received requests for information on their auto paint refinish businesses. Together, they supply $1.2 billion in coatings annually to 1,300 U.S. auto-body repair shops, says Pinehurst, N.C.-based industry consultant Phil Phillips. All paint makers say they are cooperating with Justice Department. However, publicly available documents suggest that Akzo is key to inquiry. The Dutch company's annual report states that last year it incurred $26 million in legal and settlement costs because of paint-refinish antitrust violations. And...