European Commission fines Cartel €2.93 billion
On 19th July 2016, The European Commission issued a press release announcing record fines of €2.93 billion for European truck manufacturers who had participated in a long running cartel. The Commission found that MAN, Volvo/Renault, Daimler, Iveco, and DAF broke EU antitrust rules and these truck makers colluded for 14 years on truck pricing and on passing on the costs of compliance with stricter emission rules. The Commission imposed a record fine of € 2.93 billion. MAN was not fined as it revealed the existence of the cartel to the Commission. All companies acknowledged their involvement and agreed to settle the case.
The following extract from the press release and comments from European Commissioner for Competition, Margrethe Vestager (pictured), clearly shows that the cartel was highly coordinated and caused a lot of damage. The Commissioner for Competition said:
“We have today put down a marker by imposing record fines for a serious infringement. In all, there are over 30 million trucks on European roads, which account for around three quarters of inland transport of goods in Europe and play a vital role for the European economy. It is not acceptable that MAN, Volvo/Renault, Daimler, Iveco and DAF, which together account for around 9 out of every 10 medium and heavy trucks produced in Europe, were part of a cartel instead of competing with each other. For 14 years they colluded on the pricing and on passing on the costs for meeting environmental standards to customers. This is also a clear message to companies that cartels are not accepted.”
Road haulage is an essential part of the European transport sector and its competitiveness is contingent on the prices of the vehicles used by transporters. Today’s decision relates specifically to the market for the manufacturing of medium (weighing between 6 to 16 tons) and heavy trucks (weighing over 16 tons). The Commission’s investigation revealed that MAN, Volvo/Renault, Daimler, Iveco and DAF had engaged in a cartel relating to:
- coordinating prices at “gross list” level for medium and heavy trucks in the European Economic Area (EEA). The “gross list” price level relates to the factory price of trucks, as set by each manufacturer. Generally, these gross list prices are the basis for pricing in the trucks industry. The final price paid by buyers is then based on further adjustments, done at national and local level, to these gross list prices.
- the timing for the introduction of emission technologies for medium and heavy trucks to comply with the increasingly strict European emissions standards (from Euro III through to the currently applicable Euro VI).
- the passing on to customers of the costs for the emissions technologies required to comply with the increasingly strict European emissions standards (from Euro III through to the currently applicable Euro VI).
The infringement covered the entire EEA and lasted 14 years, from 1997 until 2011, when the Commission carried out unannounced inspections of the firms. Between 1997 and 2004, meetings were held at senior manager level, sometimes at the margins of trade fairs or other events. This was complemented by phone conversations. From 2004 onwards, the cartel was organised via the truck producers’ German subsidiaries, with participants generally exchanging information electronically. Over the 14 years the discussions between the companies covered the same topics, namely the respective “gross list” price increases, timing for the introduction of new emissions technologies and the passing on to customers of the costs for the emissions technologies. Today’s decision follows the sending of a Statement of Objections to the trucks producers in November 2014. In the context of this investigation, proceedings were also opened with regard to Scania. Scania is not covered by this settlement decision and therefore the investigation will continue under the standard (non-settlement) cartel procedure for this company.”
- Press release from the European Commission including a breakdown of the fines imposed on the truck manufacturers: EC Press Release
- European Commission Decision in the European truck cartel case (PDF format): EC Truck Cartel Decision
- Summary of the European Commission’s decision in 23 European languages below (click to view):
The BarentsKrans damages case on behalf of victims
Claims Funding Europe and BarentsKrans are commencing proceedings in the Netherlands on behalf of the victims of the truck cartel from all over Europe. If you bought trucks from the European truck cartel during the cartel period, you are entitled to seek damages plus interest in respect of the losses you incurred as a result of the cartel. To register your interest in participating in the case, please use the link below to access the registration form.