A cartel of German car manufacturers! Badge

A cartel of German car manufacturers!

A cartel of German car manufacturers!
Jul 21 2017
Engine of a VW Tiguan, one of the affected models (Source: Oxyman/ Tony Hisgett CC BY 2.0)

The biggest German scandal of the new century

The practice of creating cartels became widespread in the 19th century: it involved several rival companies working together to enforce higher prices or just to make life easier for themselves. As this practice often leads to unfair competition and disadvantages consumers, it is illegal. In Germany, the Federal Cartel Office is responsible for ensuring compliance with the anti-trust legislation passed over the last 200 years.

21 July 2017 saw the publication of an article in the German weekly Der Spiegel, accusing the largest German car manufacturers of colluding on a number of issues, including the installation of illegal emission control mechanisms in diesel vehicles. The vehicles were thereby manipulated to show lower exhaust emissions than was actually the case. Investigations conducted by the German Federal Cartel Office resulted in the EU imposing heavy fines on VW, BMW and others.

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