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Image header Agence Europe
Europe Daily Bulletin No. 11871
ECONOMY - FINANCE - BUSINESS / Anti-trust

Scania fined more than €880 million for participation in cartel

On Wednesday, 27 September 2017, the European Commission decided to hand down a fine of €880,523,000 to the truck builder Scania, for its involvement in a cartel between truck builders for 14 years.

The cartel involved Scania, MAN, DAF, Daimler, Iveco and Volvo/Renault. Between 1997 and 2004, physical and telephone meetings took place between senior executives of these companies, whilst between 2004 and 2011, the cartel was organised by the German subsidiaries of the builders. Over these 14 years, the aim of the cartel concerned several key aspects of road haulage. The companies effectively made arrangements concerning pricing at 'gross list' level for medium and heavy trucks in the European Economic Area (EEA). These gross prices correspond to the ex-factory price for trucks and constitute a basis for the sale price of the vehicle.

The companies then agreed on a timetable for the introduction of emissions technologies in order for medium and heavy trucks to comply with European emission standards.  Finally, they agreed on passing on to customers the costs for setting in place the above-mentioned emissions technologies.  However, the European Commission makes clear that the aim of the cartel was not to circumnavigate the vehicle anti-pollution system nor to infringe EU rules on emissions.

Unannounced inspections were carried out from January 2011, following a request from MAN for immunity, under the rules on cartels between businesses. The Commission sent a statement of objections to the various truck builders involved in the cartel on 20 November 2014 (see EUROPE 11201), following which all of the companies with the exception of Scania decided to settle with the institution by transaction on 19 July 2016 (see EUROPE 11597). Daimler was then given the heaviest fine, of €1 billion. DAF was fined €752 million, ahead of Volvo/Renault (€670 million) and Iveco (€594 million). However, the companies' fines were then reduced by 10% as they had cooperated and recognised their involvement in the cartel. MAN received a 100% reduction of its fine for having brought the existence of the cartel to the knowledge of the institution.

Scania, which continues to deny its involvement, told AFP that it was looking carefully at the documents and that it was planning to appeal against this decision if no major new information comes to light. Margrethe Vestager concluded by stating that other investigations into cartels in the automotive sector were ongoing. (Original version in French by Lucas Tripoteau)

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