EU Antitrust Battle: Major Carmakers Fined €458 Million for Recycling Cartel

Volkswagen, Stellantis, and other carmakers were fined €458 million by EU regulators for colluding in a vehicle recycling cartel from 2002 to 2017. The companies agreed not to advertise recycling capabilities and avoided paying dismantlers, suppressing consumer awareness of eco-friendly practices.

In a significant crackdown by EU antitrust regulators, Volkswagen, Stellantis, and 13 other carmakers have been handed penalties amounting to €458 million. The ruling comes after the discovery of a cartel involved in end-of-life vehicle recycling from 2002 to 2017.

According to the European Commission, the automakers, organized by association ACEA, conspired not to compete in advertising their recycling capabilities and refrained from compensating dismantlers for processing obsolete vehicles. This agreement violated EU laws mandating firms cover recycling costs, ensuring car owners can dispose of vehicles free of charge.

Notably, Volkswagen received the heftiest fine of €127.69 million. In contrast, Mercedes-Benz escaped penalties by exposing the cartel. Companies conceded to the charges, receiving a 10% reduction in fines, with Stellantis noting provisions for the penalty in their 2024 financials.

(With inputs from agencies.)