Rio Tinto Alcan offers easier licensing deals for rivals

Rio Tinto Alcan has offered more flexible licensing terms for rivals to end an antitrust investigation and avert a possible fine, EU regulators said on Friday as they sought feedback from competitors on the proposals.

The European Commission said it had been investigating the issue following a 2008 merger which created Rio Tinto Alcan, a unit of Anglo-Australian mining company Rio Tinto.

The EU antitrust watchdog said it was concerned Rio Tinto Alcan's practice of contractually tying the licences of its AP aluminium smelting technology to the purchase of aluminium smelter equipment supplied by a subsidiary may have breached EU rules.

AP aluminium smelting technology reduces energy consumption in aluminium production.

"To address these concerns, Rio Tinto Alcan offered to modify its AP technology transfer agreements so as to enable the licensees of the AP aluminium smelting technology to choose any supplier whose PTAs (smelter equipment) meet certain technical specifications," the Commission said in a statement.

It said a market test would show whether rivals and other interested parties feel the proposal is sufficient.

"If the market test confirms that the proposed commitments remedy the competition concerns, the Commission may make the commitments legally binding on Rio Tinto Alcan," the Commission said.

The EU executive can fine companies up to 10 percent of their global turnover if they are found guilty of violating EU rules.