EU
Competition Commissioner Margrethe Vestager announced Wednesday a decision to
fine three different cartels that have helped make cars more expensive in
Europe.
The fines
for shipping companies that transport new vehicles to Europe and to suppliers
of spark plugs and brake systems amounts to €546 million. Vestager explained
that the cartels have damaged European consumers by raising transport and
component costs while hurting the competitiveness of Europe’s automotive
industry, which employs 12 million people across the EU.
“We do not
tolerate any anti-competitive behaviour that affects European consumers and
industries,” says Vestager.
According
to reports, four separate vehicle transport companies will pay €395 million,
two spark plug suppliers have been fined €76 million and suppliers of brake
systems will pay €75 million for various violations of the bloc’s competition
rules.
Maritime
shipping companies including CSAV of Chile and Japan’s “K” Line, MOL, and NYK,
as well as Norwegian-Swedish company WWL-EUKOR, had price agreements for the
transport of new passenger cars, trucks, and agricultural vehicles from October
2006-September 2012. As a result, European importers and customers were
financially disadvantaged, according to Vestager.
Japan’s
Denso and NGK electronic companies formed a cartel with Bosch of Germany and
from 2000 to 2011 to eliminate mutual competition between each other while
supplying electronic components to car manufacturers in Europe.
Bosch also
entered into an agreement with TRW from the US in 2010-2011 for the supply of
both electronic and hydraulic brake systems that adversely affected car
companies Daimler, BMW, and Volkswagen,
Wednesday’s
decisions on the spark plug and braking system cartels are part of a series of
major investigations into powerful lobbies in the automotive parts sector.
The
European Commission has already fined suppliers of various automotive supplies,
including bearings, car wire harnesses, flexible foam, parking heaters,
alternators and starters, air conditioning and engine cooling systems,
lighting, and safety systems.
https://www.neweurope.eu/article/vestager-fines-cartels-making-cars-expensive-europe/