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BRUSSELS (Reuters) – EU antitrust regulators are investigating whether BMW (BMWG.DE), Daimler (DAIGn.DE) and Volkswagen (VOWG_p.DE) have agreed to limit the deployment of clean emission technologies, which could result in heavy fines for German builders.
FILE PHOTO: A logo of German luxury car manufacturer BMW is presented at the company's annual press conference in Munich, Germany on March 21, 2018. REUTERS / Michael Dalder / File Photo
The European Commission opened an in-depth investigation Tuesday, nearly a year after raiding companies and two years after imposing a record € 2.93 billion fine on a group of cleaner engine technology .
The EU executive said the "circle of five" – BMW, Daimler and the Volkswagen Group Volkswagen, Audi and Porsche – had organized meetings to limit the development and deployment of certain emission control systems of cars sold in Europe .
"These technologies aim to reduce the environmental damage caused to passenger cars. If proven, this collusion may have prevented consumers from buying cleaner cars, although the technology is available to manufacturers, "said EU Competition Commissioner Margrethe Vestager.
The Commission said the technologies involved were selective catalytic reduction systems, which reduce nitrogen oxides from diesel car emissions, and "Otto" particulate filters that reduce particulate emissions from gasoline cars.
The head of EU antitrust legislation said that car manufacturers had also discussed other technical problems, such as common requirements for auto parts and test procedures, but what about there was no sufficient indication of the anticompetitive nature of these meetings.
He also said there was no sign that the companies were illegally coordinating themselves in the use of defeat devices to fool the regulatory tests. Volkswagen admitted to using illegal software in 2015, causing a scandal that cost it more than $ 27 billion in penalties and fines.
Volkswagen and Daimler, who claimed the status of whistleblower to avoid fines, said they were cooperating with the Commission. BMW said that it would continue to support the European authority.
The Transport & Environment campaign group said it was time for regulators to take action.
"The automotive industry was once a jewel in the European industrial crown, but its global reputation is now deeply tainted and can not be trusted anymore," said Greg Archer, Group Director.
"He has become his worst enemy and needs regulators to act with strength and determination to clean it up and establish rules that lead to zero emissions."
Companies can be fined up to 10% of their global business for breaking EU rules. The auto industry has been facing in recent years fines of one billion euros worldwide for the pricing of various auto parts.
(1 dollar = 0.8559 euros)
Report by Philip Blenkinsop; Additional report by Jan Schwartz in Hamburg and Maria Sheahan in Frankfurt; Editing by Mark Potter
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