European Union slaps record cartel fine on truck makers accused of colluding to fix prices

THE EU slapped a record fine of nearly three billion euros on five of Europe’s biggest truck-makers, accusing them of colluding in a ‘cosy’ Brussels hotel.

The European Union has slapped its biggest ever cartel fine on five of Europe’s top truck producers. Picture: Getty

The European Union has slapped its biggest ever cartel fine, worth $US3.24 billion ($A4.26 billion), on five of Europe’s top truck producers for colluding to keep prices artificially high at the expense of consumers.

EU Antitrust Commissioner Margrethe Vestager said EU-based MAN, Volvo/Renault, Daimler, Iveco and DAF “colluded on the pricing and on passing on the costs for meeting environmental standards to customers”.

MAN escaped a 1.2 billion euros ($A1.75 billion) fine for revealing the cartel, granting it full immunity.

Together the targeted companies account for 90 per cent of all medium and heavy trucks produced in Europe.

Before Tuesday’s euro fine, the previous record was from 2012, when 7 companies were fined 1.47 billion euros for rigging the market of television and computer monitor tubes.

EU Competition Commissioner Margrethe Vestager said truck makers Daimler, DAF, Iveco, MAN and Volvo/Renault had hatched the plan 14 years ago in a “cosy” Brussels hotel.

“We are imposing the highest fine ever for a single cartel, but there are good reasons for this,” Vestager told a press conference.

“In particular this cartel involves a very large market and continued for a very long time.” The investigation is based on raids carried out on large truck manufacturers in 2011, based on a tip-off by MAN.

The charge sheet includes accusations of price-fixing, but also alleges the existence of a secret agreement by the companies to delay and then pass on the costs of anti-pollution technology to consumers.

This accusation is particularly embarrassing in the wake of revelations last year of pollution test cheating by Volkswagen that has rocked the auto industry. The commission said its investigation found no connection to the Volkswagen case.

Germany’s Daimler received the biggest fine of 1bn euros, followed by DAF of the Netherlands at just above 750 million euros.

MAN received full immunity, for its co-operation in the case. In a statement, the company said it held “a clear belief in free and fair competition (and) does not tolerate any unfair business practices or illegal conduct.” The huge fine comes less than a week after Vestager filed new antitrust charges against US internet giant Google.

Coming down hard on the five European companies will also counter accusations by Washington that Vestager unfairly targets US firms.

At the onset, the cartel operated at the highest levels of management, with secret meetings held on the margins of trade shows, the commission said.

But since 2004, it shifted to emails and communications through the firms’ German subsidiaries, it said.