Spain’s National Commission on Markets and Competition (CNMC) has launched an investigation into potential anticompetitive practices in the vehicle recycling and end-of-life vehicle (ELV) decontamination sector. The authority is examining whether certain companies may have engaged in price-fixing and/or acts of unfair competition.
According to the CNMC, the conduct under scrutiny may also involve breaches of environmental regulations governing producers’ responsibility for the waste generated through their economic activities. Such practices could have provided the investigated entities with an undue competitive advantage and may amount to prohibited price-fixing under Spain’s Competition Act (Ley de Defensa de la Competencia, LDC).
Between 9 and 11 December, the CNMC carried out inspections at the premises of several entities operating in the sector. These inspections form part of a preliminary investigative phase and do not prejudge the outcome of the proceedings or imply any finding of wrongdoing. Should the investigation uncover evidence of prohibited practices, the CNMC may formally open sanctioning proceedings.
Potentially Very Serious Infringements
Agreements between competitors constitute a very serious infringement of Spanish competition law and may result in fines of up to 10% of the total turnover of the sanctioned companies. The detection and prosecution of cartels remain a key enforcement priority for the CNMC, given their harmful effects on consumers and the proper functioning of markets.
Leniency Programme and Whistleblower Mechanisms
The CNMC operates a leniency programme that allows companies and business associations involved in a cartel to obtain full immunity from fines if they provide evidence that enables the authority to detect the infringement. Companies that cooperate after an investigation has commenced may also benefit from a reduction in fines if they contribute information with significant added value.
Applicants under the leniency programme are exempt from the prohibition on contracting with the public sector, as provided for under Article 71 of the Public Sector Contracts Act (LCSP), which otherwise applies to entities sanctioned for serious infringements involving the distortion of competition.
In addition, the CNMC offers an online whistleblower platform to facilitate the detection of cartels. The Anonymous Competition Whistleblower System (SICA) allows individuals to report anticompetitive conduct anonymously, including agreements to fix prices, allocate markets or customers, or coordinate bids in public tenders.