De Beers accused of monopoly abuse

BRUSSELS – The Belgian association of diamond dealers said on Friday it had filed a complaint with the EU Commission against De Beers, saying the diamond giant was abusing its dominant market position via its ‘Supplier of Choice’ distribution system.

The Belgian Association of Dealers, Importers, Exporters of Polished Diamonds (BVGD) said on its website that De Beers “has abused its dominant position and has artificially limited the availability of diamonds on the market”. De Beers supplies rough diamonds to selected customers, known as sightholders, via the scheme.De Beers-approved sightholders cut and polish diamonds, and sell them to wholesalers or jewellers.BVGD represents polished diamond dealers in the Belgian port town of Antwerp, one of the world’s main diamond hubs.The European Commission, which polices competition in the 25-state European Union, cleared the “Supplier of Choice” scheme in 2003 but said that it would remain “watchful” to ensure the market stayed competitive.”We are asking the European Commission to reopen the case,” BVGD said, urging the EU’s executive body to abolish the scheme.De Beers, the world’s biggest diamond producer, is 45 per cent owned by mining conglomerate Anglo American.It sold US$5,7 billion (N$37,62 billion) worth of rough diamonds in 2004 through its Diamond Trading Company.-Nampa-ReutersDe Beers supplies rough diamonds to selected customers, known as sightholders, via the scheme.De Beers-approved sightholders cut and polish diamonds, and sell them to wholesalers or jewellers.BVGD represents polished diamond dealers in the Belgian port town of Antwerp, one of the world’s main diamond hubs.The European Commission, which polices competition in the 25-state European Union, cleared the “Supplier of Choice” scheme in 2003 but said that it would remain “watchful” to ensure the market stayed competitive.”We are asking the European Commission to reopen the case,” BVGD said, urging the EU’s executive body to abolish the scheme.De Beers, the world’s biggest diamond producer, is 45 per cent owned by mining conglomerate Anglo American.It sold US$5,7 billion (N$37,62 billion) worth of rough diamonds in 2004 through its Diamond Trading Company.-Nampa-Reuters