Gregory Diamond
05-26-2005, 10:13 AM
De Beers loses more sparkle
May 25 2005
Brussels - Antwerp diamond dealers plan to lodge a complaint with EU
regulators against South African giant De Beers for anti-competitive practices, a professional association said on Wednesday.
The BVGD trade body, which represents 150 wholesalers of cut diamonds, is to make the complaint "within about 15 days", its president Andre Gumuchdjian told AFP.
The aim is to "fight for the continued legal competition in the diamond market, which must remain open to everyone," he said in an open letter to diamond dealers.
Gumuchdjian accuses De Beers in particular of seeking "to eliminate independent diamond firms that are a source of competition on the market by actively encouraging jewellery-clients to get supplies solely from their sightholders" or exclusive clients.
In January 2003, the European Commission, which polices competition issues in the EU, ruled that De Beers "supplier of choice" system for selling rough diamonds was legal.
At the time, the commission calculated that De Beers controlled 60 to 65% of the global rough diamond supply.
A spokesperson for the competition services of the EU's executive commission said on Wednesday Brussels had "already received several complaints against De Beers since January 2003".
May 25 2005
Brussels - Antwerp diamond dealers plan to lodge a complaint with EU
regulators against South African giant De Beers for anti-competitive practices, a professional association said on Wednesday.
The BVGD trade body, which represents 150 wholesalers of cut diamonds, is to make the complaint "within about 15 days", its president Andre Gumuchdjian told AFP.
The aim is to "fight for the continued legal competition in the diamond market, which must remain open to everyone," he said in an open letter to diamond dealers.
Gumuchdjian accuses De Beers in particular of seeking "to eliminate independent diamond firms that are a source of competition on the market by actively encouraging jewellery-clients to get supplies solely from their sightholders" or exclusive clients.
In January 2003, the European Commission, which polices competition issues in the EU, ruled that De Beers "supplier of choice" system for selling rough diamonds was legal.
At the time, the commission calculated that De Beers controlled 60 to 65% of the global rough diamond supply.
A spokesperson for the competition services of the EU's executive commission said on Wednesday Brussels had "already received several complaints against De Beers since January 2003".