Competition and Markets Authority launches investigation into recycling of cars and vans

Agency suspects anti-competitive behaviour involving vehicle manufacturers and some industry bodies

Competition and Markets Authority launches investigation into recycling of cars and vans
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The Competition and Markets Authority (CMA) has launched an investigation into suspected anti-competitive conduct in relation to the recycling of old or written-off vehicles.

The agency says it has reason to suspect anti-competitive behaviour has taken place involving a number of vehicle manufacturers, and some industry bodies, relating to arrangements for recycling old or written-off vehicles, specifically cars and vans.

End of Life Vehicles (ELV) are categorised as waste, generally due to age-related failure or accident, and regulation requires these vehicles to be disposed of in a sustainable way.

Vehicle manufactures must offer their customers a free service for recycling ELVs, a service manufacturers often outsource to third parties.

Related: Competition and Markets Authority to review Motor Vehicle Block Exemption Regulation

The CMA is working closely with the European Commission, which has also launched an investigation into the matter.

In a statement, the CMA said: “Following a period of investigation and information gathering, the CMA may issue a statement of objections if it comes to the provisional view that competition law has been infringed.

“At this stage, no assumptions should be made about whether competition law has been broken.

“This investigation reflects the CMA’s commitment – outlined in its draft Annual Plan 2022 to 2023 – to prioritise promoting environmental sustainability through effective competitive markets.”

1 Comment

  1. Right ok, so we are not in Europe anymore if cma not noticed

    This is great news if vehicle manufacturers decommissioned cars ‘in house’ doing this would clear no end of “component protection active”
    Theads on DK. Also anybody who tried to swap a later Vauxhall
    Radio will know how much greif it can be!

    So as long as benefits everyone except the manufacturers then great do it

    Reply

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