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EU slaps record €3bn fine on truck cartel

EU slaps record €3bn fine on truck cartel

BRUSSELS: The EU slapped a record fine of nearly three billion euros on Europe’s biggest truckmakers, accusing them of colluding to fix prices and dodge the costs of stricter pollution rules.

Senior managers from Daimler, DAF, Iveco, MAN and Volvo/Renault hatched the plan in a “cosy” Brussels hotel and kept it going for 14 years, EU Competition Commissioner Margrethe Vestager said.

“We are imposing the highest fine ever for a single cartel, but there are good reasons for this,” Vestager told a press conference. “In particular this cartel involves a very large market and continued for a very long time.”

Germany’s MAN tipped off the European Commission about the collusion at the highest level, triggering an investigation that began with raids on large truck manufacturers in 2011.

The five manufacturers account for nine out of every 10 trucks sold in Europe, meaning that the case had a major bearing on the operation of the free market in the EU, Vestager said.

“Our investigations showed that a meeting in Brussels was the start of this long-lasting truck cartel,” Vestager said.

“The first meeting… was organised right here in January 1997 in what seems to be a cosy hotel and it was the beginning of a 14-year collusion,” she said, adding that “senior managers” ran the cartel until 2004 when it was organised at a lower level.

The commission’s previous record of a 1.5bn-euro ($1.7bn) fine dates back to 2012 when seven TV and computer screen makers, including LG Electronics and Philips, were found guilty of running a decade-long price-fixing scheme.

POLLUTION COSTS ‘DODGE’: The charge sheet includes accusations of price-fixing, but also alleges the existence of a secret agreement by the companies to delay and then pass on the costs of anti-pollution technology to consumers.

This accusation is particularly embarrassing in the wake of revelations last year of pollution test cheating by Volkswagen that has rocked the auto industry. The commission said its investigation found no connection to the Volkswagen case.

Germany’s Daimler received the biggest fine of 1bn euros, followed by DAF of the Netherlands at just above 750 million euros.

The fines were in fact reduced from original estimations due to the companies’ cooperation and “take into consideration turnover of companies, length and size of the market,” Vestager said.

A sixth company, Sweden’s Scania, has refused the commission’s settlement and an investigation is ongoing, she added.

MAN received full immunity for blowing the whistle on its fellow companies.

Courtesy : Dawn News



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