UK Regulator Probes Anti-Competitive Practices In Car Recycling

UK’s competition watchdog on Tuesday launched an investigation into suspected anti-competitive conduct involving a number of unnamed vehicle manufacturers and some industry bodies for not recycling old or discarded vehicles.

The Competition and Markets Authority (CMA) said it was working closely along with the European Commission, which also launched an investigation into the matter on Tuesday.

The CMA’s probe relates to arrangements for recycling old vehicles, particularly cars and vans, known in the industry as ‘end-of-life vehicles’ (ELV). Existing regulations cover all cars and small vans, including components made for them, and include requirements for the materials allowed, as well as for disposal procedures of said materials. End-of-life vehicles (ELVs) are motor categorised as waste, generally due to age or accident.

The British regulator said the ELVs are required to be disposed of in a sustainable way and carmakers must offer customers a free service for recycling ELVs – a service manufacturers often outsource to third parties. Under current rules, the responsibility for compliance lies squarely on motor vehicle producers.

The European antitrust regulator in a separate statement said it has conducted unannounced inspections at the premises of companies and associations in the automotive sector located in the bloc, without naming any.

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