Delivering Better Policies Through Behavioural Insights by OECD

Author:OECD
Language: eng
Format: epub
Tags: energy/environment/finance/governance
Publisher: OECD Publishing
Published: 2019-04-16T00:00:00+00:00

Cartel enforcement in practice

In this section, we review some legal practice by presenting cartel cases and enforcement processes for the European Union (France, Germany and the UK), Canada and the United States.

EU cartel case

The trucks cartel case (European Commission, 2017) gave rise to the highest fine levied by the European Commission since 1969: EUR 3.8 billion. The firms involved in the cartel were MAN, DAF, Daimler, Iveco and Volvo/Renault, with which the EC reached a settlement, and Scania, which refused to settle. Scania along with the other 5 companies established a cartel for a 14-year period, from 1997 to 2011.

The Commissioner for Competition, Margrethe Vestager, said: “This cartel affected very substantial numbers of road hauliers in Europe since Scania and the other truck manufacturers in the cartel produce more than nine out of every ten medium and heavy trucks sold in Europe. These trucks account for around three-quarters of inland transport of goods in Europe and play a vital role in the European economy. Instead of colluding on pricing, the truck manufacturers should have been competing against each other – also on environmental improvements” (European Commission, 2017).

The Commission’s investigation ascertained that between 1997 and 2004 senior managers of the involved companies met a number of times and held phone conversations as well. From 2004 to 2011, the truck firms’ German subsidiaries organised the cartel through electronic exchange of information. Overall, the cartel had the following goals: i) to co-ordinate prices at “gross list” for medium and heavy trucks in the European Economic Area (EEA); ii) to co-ordinate the timing for the introduction of emission technologies in compliance with the European emission standards; and iii) to pass on to consumers the costs associated with the adoption of the emission technologies.

The investigation was initiated after MAN applied for leniency. As a result, the EC carried out raids in January 2011. Subsequently, in November 2014, the EC issued a statement of objections. In July 2016, MAN, DAF, Daimler, Iveco and Volvo/Renault accepted the settlement decision. The EC levied a fine of EUR 1 billion to Daimler, EUR 881 million to Scania, EUR 753 million to DAF, EUR 670 million to Volvo/Renault and EUR 495 million to Iveco.

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