Car Giants Fined £77M for Collusion
The UK’s Competition and Markets Authority (CMA) has imposed a total fine of over £77 million on 10 major car manufacturers and two trade bodies for illegal practices related to vehicle recycling advertising. The companies involved—BMW, Ford, Jaguar Land Rover, Peugeot Citroën, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen—colluded to limit competition by withholding information on the recyclability and recycled content of their vehicles, preventing consumers from making fully informed decisions. Mercedes-Benz was also involved but was exempt from penalties after cooperating with the CMA under its leniency policy.
The CMA's investigation revealed that these manufacturers participated in a “gentleman’s agreement” between 2002 and 2018 to avoid competing on the green credentials of their vehicles. This not only restricted competition but also dampened the incentive for companies to invest in better, more sustainable technologies. The European Commission also conducted a parallel investigation and fined the companies a total of €458 million (£383 million) for similar practices across the EU.
While some companies, including Stellantis (Peugeot Citroën, Vauxhall) and Mitsubishi, received reduced fines after cooperating with the investigation, the CMA's action highlights its commitment to tackling anti-competitive behavior. Lucilia Falsarella Pereira, senior director of competition enforcement, emphasized, “This kind of collusion can limit consumers’ ability to make informed choices and lower the incentive for companies to invest in new initiatives.”
