The UK's Competition and Markets Authority (CMA) has levied a substantial fine of £77.7 million ($100.43 million) on ten major car manufacturers and two trade associations for engaging in anti-competitive practices related to vehicle recycling. This decision follows an investigation that revealed illegal agreements among the companies to avoid competition in advertising the recyclability of their vehicles and to collude on the costs associated with end-of-life vehicle (ELV) recycling.

The CMA's investigation, which ran parallel to a probe by the European Commission, uncovered that carmakers BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen, had unlawfully agreed not to compete on claims regarding the recyclability of their vehicles. This collusion effectively stifled competition and potentially misled consumers about the environmental impact of purchasing certain car brands.

Furthermore, the regulator found that these companies also colluded to avoid paying third-party recyclers for the disposal of scrap cars, shifting the financial burden onto consumers or other stakeholders. This agreement aimed to artificially suppress recycling costs, potentially leading to environmental harm and increased costs for those disposing of old vehicles.

The Society of Motor Manufacturers & Traders (SMMT) and the European Automobile Manufacturers' Association (ACEA), two key trade bodies, were also implicated in facilitating these illegal agreements. The CMA’s findings indicate that these associations played a role in coordinating the anti-competitive behavior among their members.

Mercedes-Benz, despite being involved in the agreements, will be exempt from paying a financial penalty. This exemption is due to the company’s decision to alert the CMA to its participation through the authority's leniency policy. This policy encourages companies to come forward with information about anti-competitive practices, rewarding them with reduced or eliminated fines.

The European Commission, which conducted its own investigation, also announced fines amounting to approximately €458 million ($494.82 million) against 15 major car manufacturers and ACEA. This parallel action highlights the widespread nature of the anti-competitive behavior within the automotive industry across Europe.

The CMA has given the car manufacturers and industry bodies until June 2 to pay their fines. This decision sends a strong message to the automotive industry that anti-competitive practices will not be tolerated. The regulator emphasized the importance of fair competition in ensuring consumers receive accurate information and that environmental regulations are upheld.

The investigation and subsequent fines underscore the increasing scrutiny of environmental claims made by companies, particularly in the automotive sector.