Local authorities sue European truck makers over price-fixing scheme
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More than 100 UK local authorities are taking European truck manufacturers such as Volvo and Daimler to court over a price-fixing scheme.
Basildon’s and North Tyneside’s councils as well as 22 fire and rescue services are seeking £450m worth of damages five years after the European Commission ruled that Volvo, Daimler, Iveco, DAF and MAN were part of a cartel that for 14 years colluded to fix prices, the Times reported.
The local governments claim prices for the purchase of trucks and the consequent services – including street cleaning and waste disposal – they were used for were “materially higher than they would otherwise have been” between 1997 and 2011.
While Daimler, Volvo, Iveco and DAF were fined €3bn, DAF avoided the record fine by blowing the whistle on the illegal scheme.