Cartel Crackdown: Major Carmakers Fined by EU Antitrust Regulators

Fifteen car manufacturers, including Volkswagen and Stellantis, were fined 458 million euros by EU for participating in a recycling cartel. The cartel involved sharing information about end-of-life vehicle recycling, without competition or transparency on recyclable materials. Mercedes-Benz received immunity for reporting the cartel to EU authorities.

In a significant regulatory move, the European Commission has penalized 15 major carmakers with fines totaling 458 million euros for operating a recycling cartel that spanned over 15 years. Involved companies, including Volkswagen and Stellantis, faced charges from the EU's antitrust regulators for collusion in recycling practices.

The cartel activities were dated between May 2002 and September 2017, during which these companies coordinated to suppress competition in advertising their vehicles' recyclability and to withhold details on recycled content usage. This anti-competitive conduct violated EU laws that mandate automakers to fund recycling costs, enabling free car disposal for consumers.

Mercedes-Benz remained unscathed from penalties due to its role as a whistleblower. EU antitrust chief Teresa Ribera emphasized zero tolerance towards cartels, particularly those hindering environmentally conscious consumer practices.

(With inputs from agencies.)