Driving Towards Resolution: Automakers Settle UK Antitrust Case

Ten major automakers, including BMW, Ford, Toyota, and Volkswagen, and two trade associations have agreed to pay a total of £77.7 million ($100.43 million) in fines to the UK's Competition and Markets Authority (CMA). The agreement follows their admission of infringing competition rules on car recycling.

The CMA revealed that these companies illegally colluded to avoid competing on advertising their vehicles' recyclability and agreed not to disclose the percentage of recycled content used, misleading customers and stifling innovation. They also conspired not to pay decent compensation to recycling service providers for end-of-life vehicles.

While Mercedes-Benz received immunity for reporting the wrongdoing, the rest must pay fines by June 2, 2025. The case demonstrates the requirement for transparency and fair competition in attaining sustainability.

Source: Reuters, Market Screener