EU Fines Auto Giants €458 Million for Recycling Cartel

The European Commission fined 15 car manufacturers and the European Automobiles Manufacturers' Association €458 million for forming a cartel on end-of-life vehicle recycling. The cartel involved concerted practices over 15 years, with companies like Toyota and BMW implicated. Mercedes-Benz received immunity for disclosing the cartel.

The European Commission has imposed a fine of approximately €458 million on 15 prominent car manufacturers and the European Automobiles Manufacturers' Association. This penalty comes as a result of their participation in a cartel concerning end-of-life vehicle recycling, a practice involving the dismantling and recycling of vehicles no longer fit for use.

Over a 15-year period, companies such as Toyota, Volkswagen, and BMW, along with the Association, engaged in anticompetitive agreements and concerted practices aimed at controlling the recycling process of cars. This action by the Commission underscores the gravity of the violations committed by these automotive giants.

While Mercedes-Benz was involved in the cartel, it avoided financial penalties by revealing the cartel to the Commission under a leniency program. In 2022, EU antitrust regulators had already begun investigations into several automotive companies suspected of breaching cartel regulations.

(With inputs from agencies.)