Ministry of Justice Opens Antitrust Investigation Under Auto Emissions Deal With California



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The Ministry of Justice has opened an antitrust investigation into the four major carmakers that have reached an agreement with California this year to reduce car emissions, according to sources close to the case, compounding the standoff between President Trump, from California, and the auto industry. the most important setbacks in climate regulation.

The Trump administration is on the verge of drastically reducing the rules of the Obama era aimed at reducing emissions from cars that contribute to global warming, an effort that major automakers have publicly opposed. The administration is also considering a plan to revoke California's legal authority to enforce stricter greenhouse gas emission regulations within its state's borders, putting both parties on the way of the collision.

In July, four automakers – Ford Motor Company, Volkswagen of America, Honda and BMW – announced that they had reached an agreement with California allowing them to meet slightly less stringent standards than the rules of the industry. Obama era, which would nevertheless require the fuel-efficient builders of their vehicles. The announcement was a source of embarrassment for the Trump administration, who called it "P.R. cascade."

The Justice Department is now investigating whether the four automakers violated federal antitrust laws by entering into a side agreement to comply with California's stricter rules, said the people. The Ministry of Justice declined to comment on the investigation, which was initially reported by the Wall Street Journal.

"It is extremely unusual for a prosecutor to investigate an agreement that has not even been signed," said Revesz.

"Four car manufacturers are opposed to something the president wants to do", Mr. Revesz said. "Now, the federal government's tremendous prosecutorial power is exercised against them. This should make the big companies very nervous.

The survey already seems to have this effect. Another company, Mercedes-Benz, was on the verge of joining the California deal. But after the German government learned that the federal government had opened an investigation into the other signatory companies, it warned Mercedes not to participate, according to an informed person who spoke anonymously about it because of the negotiations.

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