The European Commission dished out a $1 billion fine to be paid by BMW and Volkswagen
BMW and the Volkswagen Group have been given a fine of $1 billion (Rs. 7454 crores) by the European Commission after it came to light that they, together with Daimler, held back development of emissions technology.
A statement from the EU Commission says the 3 German auto majors, along with Audi and Porsche, had “regular technical meetings” between 2009 and 2014 where they discussed developing a technology to reduce nitrogen-oxide emissions in diesel-powered cars.
According to the commission, the firms did not use the technology’s full potential, although they “possessed the technology to reduce harmful emissions beyond what was legally required” under EU emissions regulations.
Thus, the charges relate to conduct that took place during the meetings, which the Commission says breached EU’s antitrust rules.
Accordingly, the Volkswagen Group has been fined $595 million (Rs. 4433 crores), while BMW was fined $442 million (Rs. 3293 crores), thus, taking the total fine BMW, Volkswagen have to pay to over $1 billion (7454 crores).
Because it revealed the existence of the emissions cartel, Daimler was not issued a fine by the European Commission.
The Volkswagen Group, in a statement, has said this is the first time the European Commission “has prosecuted technical cooperation as an antitrust violation” and is contemplating whether it should appeal the ruling.
On the other hand, the BMW Group said the Commission dropped most of its charges of antitrust violations which “underlines that there has never been any allegation of unlawful manipulation of emission control systems by the BMW Group.”
