The European Commission has imposed fines totaling approximately €458 million on 15 major car manufacturers and the European Automobile Manufacturers’ Association (ACEA) for their involvement in a long-running cartel concerning the recycling of end-of-life vehicles (ELVs).
The Commission’s investigation revealed that these companies engaged in anticompetitive agreements for over 15 years, restricting competition in ELV recycling practices. Mercedes-Benz, which disclosed the cartel to the Commission, received full immunity from fines under the leniency program.
Infringement Details
ELVs are vehicles no longer fit for use due to age, wear, or damage. Under EU Directive 2000/53/EC, car manufacturers are required to bear the costs of ELV recycling when necessary, ensuring the last owner can dispose of their vehicle at no cost.
The Commission’s investigation uncovered two main collusive practices:
- “Zero-Treatment-Cost” Strategy: Manufacturers agreed not to remunerate car dismantlers for processing ELVs, claiming that the recycling process was profitable enough without payment. Additionally, they shared sensitive commercial information and coordinated behavior toward dismantlers.
- Suppression of Recycling Information: The companies agreed not to promote the extent of ELV recyclability or the use of recycled materials in new cars. This strategy limited consumer awareness and reduced pressure on manufacturers to exceed legal recycling requirements.
The Commission identified ACEA as the key facilitator of the cartel, organizing meetings and interactions between involved car manufacturers. The infringement spanned across the European Economic Area (EEA) from May 29, 2002, to September 4, 2017.
Fines and Leniency Program
The fines were determined based on the Commission’s 2006 Guidelines, considering factors such as the number of cars affected, the infringement’s nature, duration, and geographic scope. Several companies received reductions under the leniency program:
- Mercedes-Benz received 100% immunity, avoiding a fine of approximately €35 million.
- Stellantis (including Opel) received a 50% reduction, with a final fine of €74.9 million.
- Mitsubishi obtained a 30% reduction, paying €4.15 million.
- Ford received a 20% reduction, with a fine of €41.5 million.
- Renault was granted a reduction for seeking an exemption from the suppression of recycling information.
ACEA, as the facilitator, was fined a lump sum of €500,000. The highest individual fine was imposed on Volkswagen, totaling €127.7 million.
Regulatory Actions and Industry Implications
In response to the case, the Commission has proposed new measures to support manufacturers in meeting CO2 emission targets between 2025 and 2027. It has also launched a fact-finding initiative to assess how European companies procure and recycle critical raw materials.
The UK Competition and Markets Authority (CMA) conducted a parallel investigation and issued its own decision under UK competition law.
Next Steps for Affected Parties
Companies or individuals harmed by the cartel can seek damages in national courts, as EU law recognizes the Commission’s decision as binding proof of illegal conduct. The Antitrust Damages Directive facilitates such claims, ensuring victims can pursue appropriate compensation.
The Commission encourages whistleblowers to report anticompetitive behavior through its anonymous online tool, ensuring effective enforcement of EU competition law.
Statement from the Commission
Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, emphasized the importance of preventing cartels that undermine environmental sustainability:
“We will not tolerate cartels that suppress consumer awareness and demand for environmentally friendly products. High-quality recycling in key sectors such as automotive is essential to achieving our circular economy objectives.”
The case marks the 43rd settlement under the EU’s cartel settlement procedure, highlighting the Commission’s commitment to maintaining fair competition and sustainability in the automotive sector.
