The Competition and Markets Authority (CMA) said it will continue its investigation into suspected anti-competitive conduct in relation to the recycling of old or written-off vehicles, specifically cars and vans, also known as ‘end-of-life vehicles’ or ELVs, until March 2024.
The CMA launched an investigation into suspected breaches of competition law relating to the recycling of end-of-life vehicles on March 15th 2022. The investigation concerns suspected infringements of Chapter I of the Competition Act 1998 (‘CA98’) involving a number of vehicle manufacturers and some industry bodies.
Between March and December 2022, the Competition and Markets Authority (CMA) conducted an initial investigation into suspected anti-competitive conduct in the end-of-life vehicle recycling sector. This included information gathering, analysis, and a review of the information gathered.
In December 2022, the CMA issued a penalty notice to BMW AG for failing to comply with a requirement to provide information. The CMA found that BMW AG, without reasonable excuse, had failed to comply with a requirement imposed on it under section 26 of the Competition Act 1998 (CA98).
In February 2023, the High Court and the Competition Appeal Tribunal (CAT) ruled in favour of BMW AG and Volkswagen AG, who had challenged the CMA’s jurisdiction to investigate their conduct. The CMA said it would seek permission to appeal the ruling.
In July 2023, the CMA announced that it would continue its investigation until March 2024. The CMA said that it had made “significant progress” in the investigation but that it needed more time to gather evidence and assess the case.
The CMA’s investigation is ongoing. If the CMA finds that there has been anti-competitive conduct, it could impose fines or other penalties.