EU Fines 15 Automakers €458 Million for Anti-Competitive Recycling Practices

The European Commission has imposed hefty fines totaling €458 million on 15 major automakers and the European Automobile Manufacturers Association (ACEA) for coordinating anti-competitive behaviors in the recycling of end-of-life vehicles.

Key Points of the Settlement

On April 1, the Commission announced that 16 major automakers had reached an agreement with ACEA to coordinate these anti-competitive practices. Mercedes-Benz has been exempted from financial penalties due to their voluntary disclosure of the violations, while all other companies involved have admitted to the violations and reached a settlement.

German automotive giant Volkswagen received the largest fine at €128 million, while Stellantis was hit with a €75 million penalty.

Timeline and Companies Involved

The anti-competitive practices spanned nearly 15 years, from 2002 to 2017. The following automakers were implicated in the investigation:

• BMW (May 29, 2002 – September 4, 2017)
• Ford (May 29, 2002 – September 4, 2017)
• Honda (May 29, 2002 – September 4, 2017)
• Hyundai/Kia (March 2, 2006 – September 4, 2017)
• Jaguar Land Rover/Tata (September 23, 2008 – September 4, 2017)
• Mazda (September 13, 2006 – September 4, 2017)
• Mercedes-Benz (May 29, 2002 – September 4, 2017)
• Mitsubishi (May 29, 2002 – September 4, 2017)
• Opel/General Motors (May 29, 2002 – September 4, 2017)
• Renault/Nissan (May 29, 2002 – September 4, 2017)
• Stellantis (May 29, 2002 – September 4, 2017)
• Suzuki (May 29, 2002 – September 4, 2017)
• Toyota (May 29, 2002 – September 4, 2017)
• Volkswagen (May 29, 2002 – September 4, 2017)
• Volvo (May 29, 2002 – September 4, 2017)

Fine Reduction Based on Cooperation

Several companies received reduced fines based on their level of cooperation:

• Mercedes-Benz: 100% reduction (€0)
• Stellantis: 50% reduction (€74.93 million)
• Mitsubishi: 30% reduction (€4.15 million)
• Ford: 20% reduction (€41.46 million)

Other notable fines included BMW (€24.59 million), Toyota (€23.55 million), and Renault/Nissan (€81.46 million).

This landmark decision highlights the European Commission’s commitment to maintaining fair competition in the automotive sector, particularly regarding environmental practices like vehicle recycling. The coordination between these major manufacturers potentially hindered innovation and competitive pricing in the end-of-life vehicle recycling market, directly impacting consumers and the environment.

The case serves as a reminder that even sustainability initiatives must adhere to competition laws, ensuring that environmental progress occurs within a framework of fair market practices.