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Cars
Published on April 5, 2019 |
by Dr. Maximilian Holland
April 5, 2019 by Dr. Maximilian Holland
The European Commission has informed VW, BMW and Daimler of its preliminary view that they engaged in illegal anticompetitive practices between 2006 and 2014, keeping dirty diesel engines. Car manufacturers now have the right to defend themselves, but if they are found guilty, they will be liable to a fine of up to 10% of global annual turnover ($ 26 billion for VW only).
The Competition Commission published the notice of its preliminary "Statement of Objections" on Friday morning, as well as the following comments by Commissioner Margrethe Vestager:
"Companies can cooperate in many ways to improve the quality of their products. However, the EU's competition rules do not allow them to hear exactly the opposite: do not improve their products, do not compete on quality. We are concerned that this is the case in this case and that Daimler, VW and BMW have breached the EU's competition rules. As a result, European consumers may have been deprived of the opportunity to buy cars with the best technology available. The three automakers now have the opportunity to respond to our findings. "
The preliminary findings are the result of a thorough investigation opened in September 2018 following inspections conducted in October 2017. The alleged collusion between the German Big 3 falls into two main areas:
- They would have combined to limit spending on NOx emission technology (in particular, limit the functionality of selective catalytic reduction technology) between 2004 and 2014.
- They reportedly collaborated to avoid or delay the implementation of particle reduction technology (Otto particle filters) between 2009 and 2014.
More details on the allegations are available in the Commission's press release. The Commission notes that the scope of the current claims is limited to alleged violations of competition law. Separate and independent investigations, as well as possible prosecutions, initiated by other bodies (European, national and civil society) are underway concerning dieselgate cheating and related environmental offenses.
The possible consequences for the Big 3 are important:
"If, after the parties have exercised their rights of defense, the Commission finds that there is sufficient evidence of an offense, it may adopt a decision prohibiting the conduct and fine up to 10% of a company's annual worldwide turnover. "
By 2018, VW's worldwide business figure had risen to nearly 236 billion euros (265 billion dollars), to 167 billion euros for Daimler (187 billion dollars) ) and BMW 99 billion (2017 figures).
Unfortunately, there is no legal deadline for the completion of the procedure and, given the recent history, it is likely that the German Big 3 is dragging its feet on the issue, as it has done for all. other aspects of the dieselgate scandal.
About the author
Dr. Maximilian Holland Max is an anthropologist, social science theorist and international political economist who tries to ask questions and encourages critical reflection on social and environmental justice, sustainability and the human condition. He has lived and worked in Europe and Asia and currently resides in Barcelona.
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