UPDATE 1-IACS settles EU antitrust case, offers commitments

* Does not admit any illegal behaviour, no fines

* Commitments are legally binding

* IACS rivals will have access to its working groups, data

(Adds details)

By Foo Yun Chee

BRUSSELS, Oct 14 (Reuters) - European Union regulators ended their antitrust case against IACS on Wednesday after the trade group for ship inspection companies agreed to let rivals access its activities and technical data.

IACS, the International Association of Classification Societies, proposed the commitments after the European Commission raided several unidentified ship classifiers in January 2008 on suspicion of breaking EU antitrust rules.

"This paves the way for more competition in this market, which should generate lower prices, more customer choice and improved quality of service," EU Competition Commissioner Neelie Kroes said in a statement.

Regulators charged IACS with reducing competition by preventing outside classification societies from joining the organisation.

The commitment decision, also known as an Article 9 decision, means IACS does not admit any illegal behaviour and pays no fine. Ship classifiers ensure that vessels are designed, constructed and maintained to their standards.

IACS will apply its membership criteria without any discrimination, allow competitors to take part in its technical working groups and use its technical data. It will also set up an independent appeal board to settle disputes.

The Commission could levy a penalty of up to 10 percent of a company's global turnover if the ship classifier fails to comply with the legally binding commitments.

IACS members include British-based Lloyd's Register, the American Bureau of Shipping, the China Classification Society, Norway's Det Norske Veritas, Germanischer Lloyd, the Korean Register of Shipping, the Russian Maritime Register of Shipping and Japan's Nippon Kaiji Kyokai.

Italy's RINA S.p.A and Paris-based Bureau Veritas are also members while the Indian Register of Shipping is an associate.

IACS' rules apply to more than 90 percent of the world's cargo carrying tonnage.

One of the Commission's most high-profile commitment decisions came when it closed an antitrust probe last November into German utility E.ON (EONGn.DE) in return for the sale of some strategic assets.