The companies accused are:
- Volvo / Renault
What has happened?
The companies stand accused of breaching the Competition Act 1998 and the Enterprise Act 2002. They are currently being investigated after MAN, who is involved in the scandal, came forward as a whistleblower and exposed the existence of the alleged cartel.
The company 'MAN' came forward and exposed the scandal as a whistleblower. This means proving the existence of the Truck Cartel should be straightforward.
'MAN' can still be liable for claims against them as well
Due to the truck companies involved being international and supplying to the EU, the companies may also be in breach of The Treaty of the Functioning of the European Union; breaching EU law.
The Cartel Exposed
The truck makers involved in the suspected Truck Cartel are facing allegations of:
- Price Fixing
- Fixing the timing and price increase levels of new emissions technology
Any trucks purchased between 1997 and 2011 may be affected.
If it is found that they have been price fixing and fixing the introduction of new emissions technology, they will likely be found in breach of both the Competition Act 1998 and EU law.
If you or your organisation has bought vehicles from the affected companies between these dates, you can INSTRUCT US TODAY to claim back damages.
How the law works...
The UK and EU law do not allow certain types of agreements to take place that may negatively affect trade and competition in the UK and/ or EU. Arrangements that would be a breach of both UK and EU law can be: fixing any selling conditions (the fixing of buying and selling prices); controlling production and technological developments; share of markets and source supplies; and agreements which would put other businesses at a disadvantage.
There are severe consequences that companies may face if they are found to be in breach of Competition Law;
- Those involved can face fines of up to 10% of their global turnover
- The conduct can be stopped by a court injunction
- Third parties who can show that they have suffered a loss as a result of the companies non-competitive behaviour can claim damages
- It can result in people being barred from being company directors
In terms of the truck companies involved, they are set to face some of the largest fines ever set by the EU. As a collective the truck companies have set aside $2.6 billion to cover the cost of the fines, but also four of the companies have individually set aside millions of pounds to pay out as well.
An injunction would most likely be put in place to stop the cartel as well. Also, all those that have been affected by purchasing from the companies, both directly and indirectly, may be able to claim damages from the truck companies.
The truck companies face further penalties as they are accused of acting as a cartel. Under both UK and EU acts, acting as a cartel is said to be the worst thing that they could do, meaning that they could face higher penalties. Those that are found to have taken part in a cartel are liable to unlimited fines and potentially up to 5 years imprisonment. This means that an unlimited amount of people could claim against the companies, as well as individuals involved in the cartel could face prison sentences.