EU Imposes €460 Million Fine on Automakers for Cartel Activity
Major automotive manufacturers penalized for anti-competitive practices impacting recycling and consumer choice.
The European Commission has announced a cartel fine amounting to approximately €460 million against several major automakers for engaging in anti-competitive behavior over an extended period.
Volkswagen has received the largest penalty, totaling around €127 million, while BMW faces a fine of approximately €25 million.
Mercedes-Benz has been granted immunity from penalties after disclosing details of the cartel's operations, despite having been subject to a potential fine of around €35 million.
The infringements occurred between 2002 and 2017, involving the European Automobile Manufacturers Association (ACEA) and 16 prominent manufacturers.
According to the Commission, the automakers entered into unlawful agreements that adversely affected recycling companies and consumers.
Specifically, they were found to have coordinated their actions regarding the payment for dismantling end-of-life vehicles and exchanged information about individual contracts with auto dismantlers.
Furthermore, the manufacturers collectively agreed to refrain from promoting the high recycling rates of their vehicles, which hindered consumers from considering such information when making vehicle purchases.
This coordination was aimed at reducing the impetus on companies to exceed legal recycling requirements.
In a statement, Volkswagen acknowledged the European Commission's decision, affirming that the company had cooperated fully throughout the investigation.
Similar fines were imposed on other major automotive companies, including Stellantis, which is the parent company of Opel, facing fines close to €75 million, and Opel itself, receiving nearly €25 million.
The total fines would have doubled without the discounts applied for cooperation with the Commission.
All parties involved received a ten percent reduction in their fines for acknowledging their participation in the cartel and accepting responsibility for their actions.
Other automakers such as Ford and Toyota are also subject to significant penalties, with fines exceeding €40 million and approximately €24 million respectively.
The ACEA, as a lobbying association, has been fined €500,000 for facilitating cartel activities through the organization of meetings and communications among the manufacturers involved.
In a related move, the UK's Competition and Markets Authority has imposed fines exceeding £77 million (approximately €93 million) on several automakers, including BMW and Volkswagen, while similarly exempting Mercedes-Benz from penalties.
Volkswagen has received the largest penalty, totaling around €127 million, while BMW faces a fine of approximately €25 million.
Mercedes-Benz has been granted immunity from penalties after disclosing details of the cartel's operations, despite having been subject to a potential fine of around €35 million.
The infringements occurred between 2002 and 2017, involving the European Automobile Manufacturers Association (ACEA) and 16 prominent manufacturers.
According to the Commission, the automakers entered into unlawful agreements that adversely affected recycling companies and consumers.
Specifically, they were found to have coordinated their actions regarding the payment for dismantling end-of-life vehicles and exchanged information about individual contracts with auto dismantlers.
Furthermore, the manufacturers collectively agreed to refrain from promoting the high recycling rates of their vehicles, which hindered consumers from considering such information when making vehicle purchases.
This coordination was aimed at reducing the impetus on companies to exceed legal recycling requirements.
In a statement, Volkswagen acknowledged the European Commission's decision, affirming that the company had cooperated fully throughout the investigation.
Similar fines were imposed on other major automotive companies, including Stellantis, which is the parent company of Opel, facing fines close to €75 million, and Opel itself, receiving nearly €25 million.
The total fines would have doubled without the discounts applied for cooperation with the Commission.
All parties involved received a ten percent reduction in their fines for acknowledging their participation in the cartel and accepting responsibility for their actions.
Other automakers such as Ford and Toyota are also subject to significant penalties, with fines exceeding €40 million and approximately €24 million respectively.
The ACEA, as a lobbying association, has been fined €500,000 for facilitating cartel activities through the organization of meetings and communications among the manufacturers involved.
In a related move, the UK's Competition and Markets Authority has imposed fines exceeding £77 million (approximately €93 million) on several automakers, including BMW and Volkswagen, while similarly exempting Mercedes-Benz from penalties.
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