On the 1^st of April 2025, the European Commission (Commission) imposed a fine of in total EUR 458 million on car manufacturers which were involved in anti-competitive practices in the automotive sector. The cartel is formed by 15 car manufacturers, including major names such as Volkswagen, BMW, Ford, Toyota, and even a branch organization: the European Automobile Manufacturers Association (ACEA).

End-of-life vehicle

The European Union has enacted numerous policies towards promoting sustainability and green initiatives, including in the automotive industry. To combat environmental issues, the Commission has implemented Directive 2000/53/EC, with the aim to dismantle, process, and recycle vehicles that are beyond usability. This limits waste, as more than 6 million vehicles every year are classified as reaching the end-of-life vehicle (ELV) status. The Directive ensures, among other things, that manufacturers keep reusability and/or recyclability of the product in mind when designing and producing, consumers are informed about the recycling performance of new cars, and the owner of an ELV obtains the ability to cost-free dispose of the vehicle.

Anti-competitive conduct

According to Article 101 of the Treaty on the Functioning of the European Union cartels are prohibited, as agreements between companies affect trade and prevent competition. In this case, the Commission collaborated with the UK Competition and Markets Authority (CMA) for its investigation into the automotive cartel. The investigation ascertained that the car manufacturers conspired for 15 years on two particular aspects. Firstly, the manufacturers made use of the ‘Zero-Treatment-Cost’ strategy which resulted in car manufacturers not paying car dismantlers a fair price for processing ELV, putting an unfair financial burden on them. Moreover, the involved parties exchanged confidential commercial information relating to their respective agreements with car dismantlers and aligned their market behavior towards them accordingly. Sharing such details disrupts the market and suppresses competition among car manufacturers. Secondly, the car manufacturers decided jointly not to promote the recycling of the ELV and disclose to customers the amount of recycled material in a new vehicle. Effectively depriving customers of the ability to make ‘green’ choices.

Fines and leniency

Mercedes-Benz, although involved in the cartel, avoided a fine of EUR 35 million and received full immunity by notifying the Commission of the cartel back in 2019. Other car manufacturers, Stellantis, Opel, Mitsubishi, and Ford, obtained a fine reduction for cooperating with the Commission. Additionally, as all parties involved acknowledged their participation in the cartel, the Commission has reduced their fines by (an additional) 10%.

The following table provides information about (i) the companies involved, (ii) their period of participation, (iii) whether leniency has been applied and in which amount (in percentages) and (iv) the fines imposed by the Commission.

Conclusion

The Commission has imposed total fines of €458 million on the companies concerned. This is not the first time the automotive industry has been the subject to the Commission’s attention, as in 2021 a cartel regarding emission cleaning for new passenger diesel cars was fined EUR 875 million. 

The Commission is also working on its green agenda in the automotive sector. It has initiated proposals focusing on flexibility for emission reductions, financing incentives for charging infrastructure, and better fact-finding on the production and recyclability of materials.