Margrethe Vestager, the EU's competition commissioner | EPA
Margrethe Vestager busts Japanese car parts cartel
Two companies to pay €138 million for fixing price of car alternators and starters.
The European Commission Wednesday hit two Japanese firms with fines totaling €138 million after discovering three manufacturers of car parts had fixed prices over a period of five years.
Managers from Mitsubishi Electric’s Melco, Hitachi and Denso would regularly meet at each other’s offices, in restaurants or chat over the phone to decide prices and rig tenders run by car makers, the Commission said. The collusion, which began in 2004 and ended following dawn raids in 2010, related to alternators and starters used in cars.
Today’s decision follows a string of raids, probes and sanctions against the sector.
Over the past three years, the Commission has hit more than a dozen firms with fines exceeding €1 billion for fixing the prices of wires, bearings and heaters used in cars. U.S., Japanese and Chinese regulators have also issued sanctions.
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Melco was dinged the worst with a €110.9 million fine, while the Commission ordered Hitachi to pay €26.9 million. Denso escaped fines because it blew the whistle on the cartel, although the regulator said the firm would otherwise have faced a sanction of €157 million. All the companies can appeal.
“Breaking cartels remains a top priority for the Commission, in particular when they affect important consumer goods, such as cars,” Margrethe Vestager, the European Commissioner for competition, said in a statement.