EU Imposes €460 Million Fine on Major Automakers for Cartel Activities
European Commission penalizes manufacturers for anti-competitive practices impacting recycling and consumer choices.
The European Commission has announced a substantial fine of approximately €460 million against several major automakers for engaging in anti-competitive practices over an extended period.
Volkswagen received the largest portion of the penalty, amounting to around €127 million, while BMW faces a fine of approximately €25 million.
Mercedes-Benz was granted immunity from penalties after providing details of the cartel's operations, despite facing a potential fine of around €35 million.
The infringements, which occurred between 2002 and 2017, involved the European Automobile Manufacturers Association (ACEA) and 16 prominent manufacturers.
According to the Commission, these automakers entered into unlawful agreements that negatively affected recycling companies and consumers.
They coordinated their actions regarding the payment for dismantling end-of-life vehicles and exchanged sensitive information about individual contracts with auto dismantlers.
In addition, the manufacturers collectively agreed to refrain from promoting the high recycling rates of their vehicles, limiting consumer awareness when making vehicle purchases.
This coordination was aimed at reducing the pressure on companies to exceed legal recycling requirements.
Volkswagen acknowledged the European Commission's decision and stated that it had fully cooperated throughout the investigation.
Other significant fines were imposed on additional major automotive companies, including Stellantis, which is the parent company of Opel, facing fines close to €75 million, and Opel itself, which received nearly €25 million.
Without the discounts applied for cooperation with the Commission, the total fines would have doubled.
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, acting as a lobbying association, has been fined €500,000 for facilitating cartel activities through the organization of meetings and communications among the involved manufacturers.
In a related development, 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 received the largest portion of the penalty, amounting to around €127 million, while BMW faces a fine of approximately €25 million.
Mercedes-Benz was granted immunity from penalties after providing details of the cartel's operations, despite facing a potential fine of around €35 million.
The infringements, which occurred between 2002 and 2017, involved the European Automobile Manufacturers Association (ACEA) and 16 prominent manufacturers.
According to the Commission, these automakers entered into unlawful agreements that negatively affected recycling companies and consumers.
They coordinated their actions regarding the payment for dismantling end-of-life vehicles and exchanged sensitive information about individual contracts with auto dismantlers.
In addition, the manufacturers collectively agreed to refrain from promoting the high recycling rates of their vehicles, limiting consumer awareness when making vehicle purchases.
This coordination was aimed at reducing the pressure on companies to exceed legal recycling requirements.
Volkswagen acknowledged the European Commission's decision and stated that it had fully cooperated throughout the investigation.
Other significant fines were imposed on additional major automotive companies, including Stellantis, which is the parent company of Opel, facing fines close to €75 million, and Opel itself, which received nearly €25 million.
Without the discounts applied for cooperation with the Commission, the total fines would have doubled.
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, acting as a lobbying association, has been fined €500,000 for facilitating cartel activities through the organization of meetings and communications among the involved manufacturers.
In a related development, 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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