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Rabat – The European Commission has issued a $1 billion fine on prominent European car manufacturers for acting as a cartel in withholding technology.
The commission determined that Audi, BMW, Daimler, Porsche, and Volkswagen possessed the technology to reduce diesel emissions. Instead of implementing the technology, the car brands, all owned by BMW Group and VW Group, conspired to delay the introduction of the technology.
Daimler received immunity, avoiding a $613 million fine, as it was the company that revealed the conspiracy to the European Commission and cooperated in its investigation. Volkswagen Group also saw its fine reduced for producing evidence that helped “prove the existence of the cartel,” according to the EU verdict.
By agreeing to limit the use of emission-limiting technology, the two groups acted as a cartel, effectively limiting the ability of consumers to buy cars that produce less emissions.
“Today’s decision is about how legitimate technical cooperation went wrong,” said Magrethe Vestager, Executive Vice-President of the European Commission. Vestager told reporters that the accused brands “”possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards.”
The brands in question have framed their conspiracy as “technical cooperation,” and contested that the act was a violation of European antitrust laws.
Vestager discounts this narrative, emphasizing that the technical cooperation had meant the brand “avoided to compete on using this technology’s full potential to clean better than what is required by law.” She described competition and innovation to realize less polluting engines as “essential for Europe to meet our ambitious Green Deal objectives.”
“Today’s cartel investigation is an example of how competition law enforcement can contribute to the Green Deal by keeping our markets efficient, fair and innovative,” the EU proclaimed in its press release on the matter.
The investigation into the prominent car brands had originally also accused the companies of delaying the introduction of a new cleaner gasoline car, yet the Commission determined there was insufficient evidence to fine BMW and VW group on this specific charge.
