The European Commission has recently imposed fines on participants in a cartel relating to the recycling of end-of-life vehicles. This decision, adopted in parallel with a similar ruling by the UK’s Competition and Markets Authority (CMA), has attracted considerable media attention. This is partly because Commission-imposed cartel fines have become less frequent. While the overall annual total has not dropped entirely, it has been noticeably lower over the past two years.
The Commission’s full decision is yet to be published, so it remains to be seen whether the conduct in question was really as reckless and brazen as some reports suggest. It’s reasonable to question whether the behaviour was as egregious as portrayed, given that early reporting often lacks the nuance of the full legal and factual context. The colluding parties reportedly agreed not to pay third-party service providers involved in the dismantling of end-of-life vehicles. They also allegedly exchanged commercially sensitive information about their agreements with these providers and coordinated their behaviour towards them. Furthermore, they are said to have agreed not to publicly promote certain information related to end-of-life vehicle recycling.
Of particular interest is the fact that the Commission chose to fine not only car manufacturers, but also a European trade association. The European Automobile Manufacturers’ Association (ACEA), a long-established and influential body in EU circles, was fined a substantial €500,000 for its role in the collusion. This serves as a reminder that the prohibition of restrictive agreements under Article 101 of the Treaty on the Functioning of the European Union (TFEU) also applies to “decisions of associations of undertakings”.
It is also worth noting that the Commission’s press release links this cartel decision to three other initiatives announced on the same day:
- A proposed amendment to the Regulation on CO₂ emission performance standards for new cars and vans, following the Industrial Action Plan for the European automotive sector unveiled earlier this year;
- Proposed funding incentives to support the deployment of recharging infrastructure, as part of the EU’s cohesion policy mid-term review; and
- The launch of a fact-finding exercise examining industry practices in the procurement and recycling of critical raw materials.
The findings of this fact-finding exercise may eventually contribute to the adoption of a Commission guidance document on the compatibility of joint procurement and recycling of critical raw materials with EU competition law. The fact that such guidance is being considered could be seen by some as a tacit acknowledgement of the challenges faced by market participants trying to navigate the sometimes conflicting demands of strict competition rules and rising regulatory standards.
