A number of car manufacturers in Europe have had their facilities raided by anti-competition regulators due to suspicions they may have broken antitrust regulations.
The European Commission is managing the investigation alongside the UK’s Competition and Markets Authority and said it is related to how end-of-life vehicles are disposed of.
“The inspections and requests for information concern possible collusion in relation to the collection, treatment and recovery of end-of-life cars and vans which are considered waste,” the European Commission stated.
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“The Competition and Markets Authority has reason to suspect anti-competitive behavior has taken place involving a number of vehicle manufacturers, and some industry bodies,” a statement from the UK government added.
It is understood that Mercedes-Benz blew the whistle about the alleged collusion in the collection and recycling of scrapped vehicles. The German car manufacturer says it is cooperating with the European Commission and has applied for leniency. It does not expect to be fined.
A number of car manufacturers are subject to the investigation and have had their premises raided or been served letters. For example, both Ford and BMW said they had received a request for information from the European Commission but were not searched. Volkswagen also received a request for information.
Facilities of both Opel and Renault were visited by investigators.
Auto News reports that roughly 12 million cars are taken off European roads every year. Car manufacturers are held responsible for what happens to their end-of-life vehicles and regulations require roughly 85 per cent of a car’s weight to be recycled or reused.
“Unannounced inspections and requests for information are a preliminary investigatory step into suspected anticompetitive practices,” the European Commission stated. “The fact that the Commission carries out such inspections and sends out formal requests for information does not mean that the companies are guilty of anti-competitive behavior nor does it prejudge the outcome of the investigation itself.”
