South Korea fines German carmakers $33.5m for colluding on emissions

South Korea’s antitrust regulator said on Thursday it would impose a combined fine of 42.3bn won ($33.5m) on three German carmakers for colluding to curb emissions-cleaning technology for their diesel cars.

Mercedes-Benz, BMW, Volkswagen and Audi were involved in collusion that reduced competition and restricted consumer choice, the Korea Fair Trade Commission (KFTC) said in a statement.

Mercedes-Benz was fined 20.7bn won, BMW 15.7bn won and Audi 6bn won, the regulator said, adding that Volkswagen was not fined because it didn’t earn revenue relevant to the issue.

Mercedes-Benz said the company had co-operated fully with the KFTC and “will not have to pay any fine”, citing the outcome of a similar investigation by the European Commission.

“The case related to the same set of facts which has been subject to the European Commission’s proceedings and where Mercedes-Benz acted as a leniency applicant and did not have to pay a fine,” a company spokesperson said in a statement.

“At no point were agreements or an exchange of information on prices, volumes or market sharing part of the investigation.”

The KFTC declined to comment on Mercedes-Benz’s statement. BMW, Volkswagen and Audi were not immediately available for comment outside business hours.

Last year, Mercedes-Benz and its Korean unit were fined 20.2bn won for false advertising tied to gas emissions of diesel passenger vehicles.

The European Commission in 2021 fined Volkswagen and BMW a total of €875m for colluding to curb the use of emissions-cleaning technology they had developed. Mercedes-Benz, then called Daimler, was also part of the cartel but wasn’t fined after revealing its existence.

Reuters