Wednesday 27 September 2017

European Commission fines Scania EUR 800 million

The European Commission has imposed a fine of EUR 800 million on Scania.  It has found that Scania infringed EU competition law by colluding for 14 years with five other truck manufacturers on truck pricing and on passing on the costs of technologies to implement new, more stringent emissions standards.
Scania has expressed its intention to appeal the decision.
The decision follows the Commission’s settlement decision on 19 July 2016.  The Commission found that MAN, Volvo/Renault, Daimler, Iveco and DAF infringed Article 101(1) TFEU by colluding for 14 years on the pricing of trucks and on passing on the costs of compliance with stricter emission rules.  The Commission imposed a record fine of EUR 2,926,499,000 being the highest aggregate fine imposed to date for breach of EU competition law.  The Commission stated in its 19 July 2016 press release that its investigation into Scania would continue under the standard (non-settlement) procedure. 
The onslaught of private actions has started.  Road Hauliers Association has announced that it intends to bring a collective action as a representative body (i.e., as an opt-out collective proceeding in the Competition Appeal Tribunal).  Lenaghan International Transport, an Irish freight forwarding company, commenced proceedings in September 2016 in the High Court in Ireland against DAF, Daimler, Fiat Chrysler Automobiles, MAN, Renault, Scania and Volvo.  Bundesverband Güterkraftverkehr Logistik und Entsorgung eV, a German transport and logistics industry association, has stated that it is seeking to bundle as many as 100,000 purchases and rentals in a competition damages action.  Claims brought by members of the UK Freight Transport Association are believed to be in the pipeline.



European Commission - Press release, Antitrust: Commission fines Scania €880 million for participating in trucks cartel, 27 September 2017

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