EU fines Volkswagen and BMW €875m over emissions collusion
The European Commission has fined automakers BMW and Volkswagen for a total of €875 million over collusion to restrict competition for emissions-cleaning technology.
The bloc claims the two automakers worked alongside Daimler to restrict competition in emissions cleaning for new vehicles and hit them with antitrust charges. This comes separately from the "dieselgate" scandal based around software that allowed vehicles to cheat on emissions tests.
Read more: Volkswagen sues ex-CEOs for breaching "duty of care" over Dieselgate
The Commission claims the carmakers “breached EU antitrust rules by colluding on technical development in the area of nitrogen oxide cleaning."
The three companies held talks a decade ago over a piece of technology called "AdBlue," which scrubs nitrous oxide from exhaust fumes.
The companies reportedly exchanged information on AdBlue tank sizes, so they would not have to worry about competing with each other on having cleaner engines.
“The car manufacturers possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards,” Commission executive vice-president Margrethe Vestager said in a statement. “They avoided competing on using this technology’s full potential to clean better than what is required by law. So today’s decision is about how legitimate technical cooperation went wrong."
She added: "We do not tolerate it when companies collude. It is illegal under EU antitrust rules.
"Competition and innovation on managing car pollution are essential for Europe to meet our ambitious Green Deal objectives and this decision shows that we will not hesitate to take action against all forms of cartel conduct putting in jeopardy this goal.”
She told a news conference in Brussels that this "was a first" for the Commission.
"We have never had a cartel whose purpose was to restrict the use of novel technology," she said.
Volkswagen will be forced to pay a fine of €502 million, while BMW has been hit with a levy of €373 million. Daimler has not been fined.
Reuters reports the EU narrowed the scope of the investigation to ensure the charges stuck.
Read more: VW to phase out combustion engines in Europe by 2035
A Volkswagen spokesperson said the company may appeal after reviewing the Commission's position and claimed the bloc was "breaking new legal ground". The company has also questioned the EC's decision as the talks held were not related to pricing, and that the results of these talks had not been implemented.
The automaker is also considering legal action, stating that a penalty over technical talks sets an unfortunate precedent.
Daimler, however, claims the Commission had found no real evidence of collusion.
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