MAN, Volvo/Renault, Daimler, Iveco, and DAF fined 

EU (Commonwealth) _ The European Commission has determined that EU antitrust laws were broken by MAN, Volvo/Renault, Daimler, Iveco, and DAF. For 14 years, these truck manufacturers conspired on the price of their vehicles and the transfer of expenses associated with adhering to more stringent emission regulations. The record fine of € 2 926 499 000 has been issued by the Commission.

Since MAN informed the Commission of the cartel’s existence, MAN was not penalized. Each company accepted responsibility for their part in the dispute and committed to settling.

The competitiveness of road haulage, a vital component of the European transportation industry, is reliant on the cost of the vehicles that carriers employ. The market for the production of medium (weighing 6 to 16 tons) and heavy (weighing above 16 tons) trucks is the special focus of today’s decision. Following an inquiry by the Commission, it was discovered that MAN, Volvo/Renault, Daimler, Iveco, and DAF had participated in a cartel concerning.

Coordinating medium and heavy truck costs in the European Economic Area (EEA) at the “gross list” level. Each manufacturer sets the factory pricing of trucks, which is what is referred to as the “gross list” price level. These gross list prices often serve as the foundation for truck industry pricing. Following that, additional modifications to these gross list prices are made at the local and national levels, which determine the ultimate price that customers pay.

The practice of charging consumers for the emissions technology needed to meet the progressively stringent European emissions regulations (Euro III to the now in effect Euro VI).

The 14-year violation, which began in 1997 and ended in 2011 when the Commission conducted surprise inspections of the companies, included the whole EEA. Senior management meetings took place from 1997 to 2004, occasionally on the fringes of trade shows or other events. Talks over the phone supplemented this. The cartel was organized through the German subsidiaries of the truck manufacturers starting in 2004, and members mostly communicated online.

The corporations’ conversations over the course of 14 years focused on the same subjects: when new emissions technology would be introduced, how much would be passed on to customers, and the related “gross list” price increases.

The trucks’ manufacturers received a Statement of Objections in November 2014, which led to the conclusion made today. Scania-related procedures were also initiated within the framework of this inquiry. Since Scania is not covered by this settlement decision, the inquiry will proceed in accordance with this company’s usual (non-settlement) cartel procedure.
The new emission technologies mandated by the environmental standards for Euro III to Euro VI were the subject of the collusion that the Commission found, namely the timing and coordination of the transfer of costs for emission technologies for trucks that complied with the recently implemented emissions standards. The goal of the cooperation was not to manipulate or evade adhering to the new emission regulations.

The Commission’s inquiry found no connection between this cartel and claims or actions about defeating some automobiles’ anti-pollution systems (also known as “defeat devices”). As one of the components of the future European Strategy for low-emission mobility, today’s decision emphasizes the significance of a healthy competitive market to promote the development and adoption of affordable low-emission technology.

Penalties

The Commission’s 2006 Guidelines on Fines served as the foundation for setting the penalties (see press release and memo).

The Commission considered a number of factors for determining the appropriate level of fines, including the firms’ sales of heavy and medium trucks inside the European Economic Area (EEA), the gravity of the violation, their combined market share, the cartel’s geographic reach, and its longevity.

By disclosing the cartel’s existence, MAN was granted complete protection under the Commission’s 2006 Leniency Notice, averting a punishment of almost €1.2 billion. Under the 2006 Leniency Notice, Volvo/Renault, Daimler, and Iveco received reduced fines in exchange for their assistance with the investigation. The decreases are a reflection of when they cooperated and how much their testimony aided the Commission in establishing the cartel’s existence.

In light of the parties’ admission of their involvement in the cartel and their corresponding obligation, the Commission applied a 10% reduction to the penalty under the terms of the 2008 Settlement Notice.