The European Commission has opened an in-depth investigation to
assess whether BMW, Daimler and VW (Volkswagen, Audi, Porsche)
colluded, in breach of EU antitrust rules, to avoid competition
on the development and roll-out of technology to clean the
emissions of petrol and diesel passenger cars.
Commissioner Margrethe Vestager, in
charge of competition policy, said: "The Commission is
investigating whether BMW, Daimler and VW agreed not to compete
against each other on the development and roll-out of important
systems to reduce harmful emissions from petrol and diesel
passenger cars. These technologies aim at making passenger cars
less damaging to the environment. If proven, this collusion may
have denied consumers the opportunity to buy less polluting
cars, despite the technology being available to the
manufacturers."
In October 2017, the
Commission carried out inspections at the premises of BMW,
Daimler, Volkswagen and Audi in Germany as part of its initial
inquiries into possible collusion between car manufacturers on
the technological development of passenger cars.
The Commission's in-depth investigation focusses on information
indicating that BMW, Daimler, Volkswagen, Audi and Porsche,
also called the "circle of five", participated in meetings
where they discussed inter alia the
development and deployment of technologies to limit harmful car
exhaust emissions.
In particular, the Commission is assessing whether the
companies colluded to limit the development and roll-out of
certain emissions control systems for cars sold in the European
Economic Area, namely:
-
selective catalytic reduction ('SCR')
systems to reduce harmful nitrogen oxides
emissions from passenger cars with diesel engines; and
-
'Otto' particulate filters ('OPF') to
reduce harmful particulate matter emissions from passenger
cars with petrol engines.
The in-depth investigation will aim to establish whether the
conduct of BMW, Daimler and VW may have violated EU antitrust
rules that prohibit cartels and restrictive business practices,
including agreements to limit or control technical development
(Article 101 of
the Treaty on the Functioning of the European Union).
At this stage, the Commission has no indications that the
parties coordinated with each other in relation to the use of
illegal defeat devices to cheat regulatory testing.
The Commission will carry out its in-depth investigation as a
matter of priority. The opening of a formal investigation does
not prejudge its outcome.
Other topics discussed by the companies
The Commission's formal investigation concerns solely the
emissions control systems identified above. These were only
some of the issues discussed by the "circle of five". Numerous
other technical topics were discussed, including common quality
requirements for car parts, common quality testing procedures
or exchanges concerning their own car models that were already
on the market. The "circle of five" also had discussions on the
maximum speed at which the roofs of convertible cars can open
or close, and at which the cruise control will work.
Cooperation also extended to the area of crash tests and crash
test dummies where the car companies pooled technical expertise
and development efforts to improve testing procedures for car
safety.
At this stage the Commission does not have sufficient
indications that these discussions between the "circle of five"
constituted anti-competitive conduct that would merit further
investigation. EU antitrust rules leave room for technical
cooperation aimed at improving product quality. The
Commission's in-depth investigation in this case concerns
specific cooperation that is suspected to have aimed at
limiting the technical development or preventing the roll-out
of technical devices.
Background
Article 101 of
the Treaty on the Functioning of the European Union prohibits
agreements and concerted practices which may affect trade and
prevent or restrict competition. The implementation of this
provision is defined in the Antitrust Regulation (Council Regulation No
1/2003), which can also be applied by national competition
authorities.
Article 11(6) of the Antitrust Regulation provides that the
opening of proceedings by the Commission relieves the
competition authorities of the Member States of their
competence to also apply EU competition rules to the practices
concerned. Article 16(1) further provides that national courts
must avoid giving decisions which would conflict with a
decision contemplated by the Commission in proceedings that it
has opened.
The Commission has informed the companies concerned and the
competition authorities of the Member States that it has opened
proceedings in this case.
There is no legal deadline for bringing an antitrust
investigation to an end. The duration of an investigation
depends on a number of factors, including the complexity of the
case, the extent to which the companies concerned co-operate
with the Commission and the exercise of the rights of defence.
The Commission has carried out a series of major investigations
into cartels in the automotive parts sector. The Commission has
already fined suppliers of automotive bearings, wire harnesses in cars,
flexible foam used (inter alia) in car seats, parking heaters in
cars and trucks, alternators and
starters, air conditioning and engine
cooling systems, lighting
systems, occupant safety
systems, braking
systems and spark plugs.
