The Competition and Markets Authority (CMA) has fined 10 car manufacturers and two trade bodies a total of £77.7 million after uncovering illegal agreements that distorted competition in the UK market.

The investigation revealed two major breaches of competition law: restricting advertising claims about vehicle recyclability and colluding on the cost of recycling end-of-life vehicles (ELVs).

Here are some key findings from the investigation

  1. Restricting Sustainability Advertising

Car manufacturers are legally required to provide information about the recyclability of their vehicles. However, the CMA found that:

  • Manufacturers agreed not to advertise if their vehicles exceeded the minimum recyclability requirement of 85%, even when the actual percentage was higher.
  • With the exception of Renault, they also agreed not to disclose the percentage of recycled material used in vehicle production.
  • The agreement, active between May 2002 and September 2017, was documented in the ‘ELV Charta’ – sometimes referred to as a “gentleman’s agreement” – and had the intention of avoiding a competitive race among manufacturers in relation to recyclability advertising.

This prevented consumers from making fully informed choices about a vehicle’s sustainability and may have discouraged innovation in eco-friendly technologies.

  1. Buyers’ Cartel on Recycling Costs

Vehicle manufacturers are required to provide a free recycling service for customers’ old or written-off cars. This service is often outsourced to third parties. However, the CMA found that:

  • Eight manufacturers – BMW, Ford, Mercedes-Benz, Peugeot Citroen, Renault, Toyota, Vauxhall, and Volkswagen – agreed not to pay companies for ELV recycling services.
  • Additional companies and trade bodies, including Nissan, Mitsubishi, Jaguar Land Rover, ACEA (European Automobile Manufacturers’ Association), and SMMT (Society of Motor Manufacturers & Traders), later joined the agreement.
  • The agreement, which lasted from April 2004 to May 2018, prevented recycling service providers from negotiating fair pricing.

This anti-competitive practice discouraged investment in greener recycling solutions and potentially increased costs for recycling firms.

Consequences and Fines

All involved companies, except Mercedes-Benz, which received immunity for reporting the cartel, have agreed to settle and pay fines.

Some companies, including Stellantis (Peugeot Citroen, Vauxhall, and Opel), Mitsubishi, and SMMT, cooperated with the CMA early and received reductions in their fines under the leniency policy.

The largest fines include:

  • Ford: £18.5 million
  • Volkswagen: £14.8 million
  • BMW: £11.1 million
  • Nissan & Renault: £9.98 million (shared fine, plus an additional £2.8 million for Nissan)

The fines must be paid by 2 June 2025.

See: https://www.gov.uk/government/news/car-industry-settles-competition-law-case