On 25 January 2010 the European Commission announced that it will open an investigation according to Article 101 of the Treaty on the Functioning of the European Union (TFEU) on the impact on the common market by the proposed joint venture between mining companies BHP Billiton and Rio Tinto. EUROFER maintains its view that the effect of the JV on the global iron ore market would not be materially different from the full merger which had been proposed in 2008. The resulting restriction in competition moving from a position of market dominance of three companies to only two will substantially reduce the consumer choice of supplier. It effectively creates a duopoly with the iron ore market for the entire world in the hands of just two companies. BHP Billiton and Rio Tinto have market shares of seaborne iron ore of 17% and 19% respectively, while Vale, the third mining giant, controls 33% (2008).
