Huge antitrust fines for BMW and Volkswagen group

0
Police In Gran Canaria Recover Two Cars Stolen In Germany
BMW, Daimler and Volkswagen broke EU antitrust laws.

The European Commission found that Daimler, BMW and Volkswagen group, Volkswagen, Audi and Porsche, breached EU antitrust rules by colluding on technical development in the area of nitrogen oxide cleaning.

The Commission has imposed a fine of €875,189,000. Daimler was not fined, as it revealed the existence of the cartel to the Commission. All parties acknowledged their involvement in the cartel and agreed to settle the case.

“The five car manufacturers Daimler, BMW, Volkswagen, Audi and Porsche possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards,” said Executive Vice-President of the Commission Margrethe Vestager on July 8.

-- ADVERTISEMENT --

“But they avoided to compete on using this technology’s full potential to clean better than what is required by law. So, today’s decision is about how legitimate technical cooperation went wrong. And we do not tolerate it when companies collude. It is illegal under EU Antitrust rules. Competition and innovation on managing car pollution are essential for Europe to meet our ambitious Green Deal objectives. And this decision shows that we will not hesitate to take action against all forms of cartel conduct putting in jeopardy this goal,” she added.

The car manufactures held regular technical meetings to discuss the development of the selective catalytic reduction (SCR)-technology which eliminates harmful nitrogen oxide (NOx)-emissions from diesel passenger cars through the injection of urea (also called “AdBlue”) into the exhaust gas stream. During these meetings, and for over five years, the car manufacturers colluded to avoid competition on cleaning better than what is required by law despite the relevant technology being available.

More specifically, Daimler, BMW and Volkswagen group reached an agreement on AdBlue tank sizes and ranges and a common understanding on the average estimated AdBlue-consumption. They also exchanged commercially sensitive information on these elements. They thereby removed the uncertainty about their future market conduct concerning NOx-emissions cleaning beyond and above the legal requirements, so called “over-fulfilment”, and AdBlue-refill ranges.


This means that they restricted competition on product characteristics relevant for the customers.

That conduct constitutes an infringement by object in the form of a limitation of technical development, a type of infringement explicitly referred to in Article 101(1)(b) of the Treaty and Article 53(1)(b) of the European Economic Area (EEA)-Agreement.

The conduct took place between June 2009 and October 2014.



Thank you for reading, and don’t forget to check The Euro Weekly News for all your up-to-date local and international news stories.

 

-- ADVERTISEMENT --
Deirdre Tynan is an award-winning journalist who enjoys bringing the best in news reporting to Spain’s largest English-language newspaper, Euro Weekly News. She has previously worked at The Mirror, Ireland on Sunday and for news agencies, media outlets and international organisations in America, Europe and Asia. A huge fan of British politics and newspapers, Deirdre is equally fascinated by the political scene in Madrid and Sevilla. She moved to Spain in 2018 and is based in Jaen.

LEAVE A COMMENT

Please enter your comment!
Please enter your name here