Date
25 May 2017
EU Competition Commissioner Margrethe Vestager is expected to announce a record anti-trust fine on truck makers. Photo: Reuters
EU Competition Commissioner Margrethe Vestager is expected to announce a record anti-trust fine on truck makers. Photo: Reuters

EU to impose record fine on truck cartel

The European Union is set to hand truck makers around 3 billion euro (US$3.32 billion) in penalties following a probe into price-fixing and other collusion, the Wall Street Journal reported, citing people familiar with the matter.

The action by the EU’s anti-trust regulator would mark its largest cartel fine ever, the paper said.

EU competition chief Margrethe Vestager had in November 2014 charged truck makers with breaching the bloc’s anti-trust rules by illegally entering into a cartel.

The move came after a probe into several European truck makers amid suspicions they fixed prices and colluded on timing over when to implement new emissions control technologies, the report said.

While the regulator at the time didn’t reveal the companies involved, several truck makers have announced that they have set aside hundreds of millions of euros in preparation of an EU decision.

Daimler has said it has provisioned for more than 600 million euro in connection with the probe, while Iveco has said that it set aside around US$500 million.

Swedish truck maker Volvo in late June boosted its provision to a total of 650 million euro.

The EC can impose fines of up to 10 percent of a company’s global revenue but the regulator can reduce the size of the penalties for firms that have provided information about the cartel.

In addition to the EU fines, the truck makers may also be required to pay for damages filed by private companies that transport goods, the report said.

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RC

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