EU fines BMW, Volkswagen 875 million euros for colluding on anti-pollution technology

The European Union (EU) antitrust authority on July 8 fined German auto giants Volkswagen and BMW 875 million euros for violating the colluding on anti-pollution technology for diesel cars. In a statement on Thursday, European Commission imposed a fine of € 875,189,000 marking another blow against the German auto industry which is already stirred with the devastating “dieselgate” emissions cheating scandal that broke in 2015. The case under which fines were imposed, was launched after anti-cartel raids in 2017.

The case also found that even though the car manufacturers had not formed a formal cartel, they had made illegal agreements to limit the introduction of “AdBlue” or urea to diesel engine exhaust gases. This further reduced the effectiveness as a way to produce cleaner emissions. Since Daimler alerted the European Commission regarding the issue, it was also spared from a fine. EU’s Executive Vice-President of the Commission Margrethe Vestager said, “The five car manufacturers Daimler, BMW, Volkswagen, Audi and Porsche possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards.”

He said, “But they avoided to compete 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. And 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,” he added.

Why Brussels launched an investigation?

Volkswagen has previously admitted to duping 11 million vehicles across the globe to appear less polluting. It triggered a wave of backlash and ger against the German auto-maker and also prompted a detailed investigation into the matter by Brussels concerning three companies. Reportedly, BMW has said in a statement that the European Union had dropped earlier allegations that the auto giants colluded on putting off cleaner particulate filters for petrol cars. It reportedly further accused the bloc of entering “uncharted territory for antitrust law” with its decision citing its failure to prove the existence of a price-fixing cartel.

IMAGE: AP