BMW and Volkswagen are said to have been fined by the European Commission for conspiring to stop using the emissions cleaning technology they developed. Based on the reports, the German automakers had to pay $1 billion or €875 million for the offense.
The EU decision to fine BMW and Volkswagen
It was revealed on Thursday, July 8, that this is a different case from what was called the “Dieselgate” scandal where they made software to manipulate vehicle emissions tests. According to Reuters, in this case, discussions were held concerning the design standards for AdBlue, an exhaust fluid used to reduce the amount of air pollution produced by diesel-powered vehicles by cleansing nitrogen oxide from the exhaust gases.
Margrethe Vestager, the head of the European Union antitrust commission, said that German car manufacturers, including Porsche and Volkswagen, own a technology that can cut down harmful emissions to as much as above the required amount under the EU law, however, they avoided competing to do so.
Now, under a settlement, it was reported that Volkswagen would be paying €502 million and BMW €373 million in fines. Daimler is also part of the cartel but was not fined as it was the one who revealed about the cartel.
"This is a first," Margrethe Vestager, the head of European Union antitrust, told the media via a press conference that was held in Brussels. "We have never had a cartel whose purpose was to restrict the use of novel technology. "So today's decision is about how legitimate technical cooperation went wrong and we do not tolerate it when companies collude."
The involved carmakers’ response to the probe and fine
Vestager shared that all the involved companies agreed to settle and each has acknowledged its role in the cartel. However, CNN Business reported that Volkswagen is considering taking legal action as it thinks the penalty about emissions technology “set a questionable precedent.”
"The Commission is entering a new judicial territory because it is treating technical cooperation for the first time as an antitrust violation," a rep from Volkswagen stated. The company added that the fine had been imposed even if no customer has been harmed.


Coupang Reports Q4 Loss After Data Breach, Revenue Misses Estimates
Middle East Airspace Shutdown Disrupts Global Flights After U.S.-Israel Strikes on Iran
Asian Markets Slide as Nvidia Earnings, U.S.-Iran Tensions and AI Valuations Weigh on Investor Sentiment
Paramount Skydance to Acquire Warner Bros Discovery in $110 Billion Media Mega-Deal
U.S. Stocks Close Lower as Hot PPI Data, Nvidia Slide Weigh on Wall Street
Lynas Rare Earths Shares Surge on Strong Half-Year Earnings and Rising Global Demand
China’s New Home Prices Post Sharpest Drop Since 2022 Amid Ongoing Property Slump
FAA Plans Flight Reductions at Chicago O’Hare as Airlines Ramp Up Summer Schedules
Amazon’s $50B OpenAI Investment Tied to AGI Milestone and IPO Plans
Gold Prices Steady in Asia, Set for Strong February Gains on Safe-Haven Demand
Ecuador Raises Tariffs on Colombian Imports to 50% Amid Border Security Dispute
Venezuela Oil Exports to Reach $2 Billion Under U.S.-Led Supply Agreement
Dominican Republic Unveils Massive Rare Earth Deposits to Boost High-Tech and Energy Sectors
PBOC Scraps FX Risk Reserves to Curb Rapid Yuan Appreciation
Stock Market Movers: Dell, Block, Duolingo, Zscaler, CoreWeave, Autodesk, Rocket, MARA
U.S. Stocks Rally as Nvidia Earnings Loom, Oil Prices Near Seven-Month Highs
BlueScope Steel Shares Drop After Rejecting Revised A$15 Billion Takeover Bid 



