Automakers hit with $600 million in fines

Major global automakers and two industry trade bodies have been fined a combined $600 million for operating a "cartel" over vehicle recycling and environmental advertising claims, in a coordinated action between the United Kingdom and the European Union.

The UK's Competition and Markets Authority, or CMA, and the European Commission have penalized a total 15 car manufacturers, along with the UK's Society of Motor Manufacturers and Traders, or SMMT, and the European Automobile Manufacturers' Association, or ACEA, for their roles in a "long-lasting cartel concerning end-of-life vehicle recycling".

The authorities said the enforcement action was taken because laws requiring manufacturers to disclose recycling information in their marketing materials had been violated.

The CMA announced the settlement on Tuesday following a three-year investigation that began with a tip-off from the German manufacturer Mercedes-Benz, reported The Times newspaper.

Mercedes-Benz received immunity from fines for exposing the cartel, while other automakers, including BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen, were found to have "illegally agreed" to limit competition in advertising their vehicles' recyclability rates, reported news agencies.

The regulator also determined that the manufacturers, except for Renault, had colluded to withhold information from customers about the percentage of recycled materials in their vehicles.

The ACEA and SMMT trade bodies were also implicated in facilitating these agreements.

The European Commission on Tuesday imposed fines totaling $494.5 million on 15 car manufacturers and their trade association, the ACEA, for "cartel" behavior spanning from 2002 to 2017.

In their parallel action, the UK's CMA levied 78 million pounds in fines against 10 of the automakers and the two industry bodies for withholding crucial information from consumers about vehicle recycling capabilities.

Lucilia Falsarella Pereira, the CMA's senior director of competition enforcement, said: "Agreeing with competitors the prices you'll pay for a service or colluding to restrict competition is illegal and this can extend to how you advertise your products.

"This kind of collusion can limit consumers' ability to make informed choices and lower the incentive for companies to invest in new initiatives.

"Today's fines show our commitment to taking action when competition law is broken. In accordance with our leniency policy, we've given discounts to those who came forward with information and cooperated at an early stage, which helps to get the swiftest outcomes."

Teresa Ribera, executive vice-president for the European Commission's clean energy transition arm, said: "We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products."

jonathan@mail.chinadailyuk.com