Latest update on the investigation into End of Life Vehicles market;
The Competition and Markets Authority (CMA) has reason to suspect anti-competitive behaviour has taken place involving a number of vehicle manufacturers, and some industry bodies. This conduct relates to arrangements for recycling old or written-off vehicles, specifically cars and vans, which are known in the industry as ‘end-of-life vehicles’ or ELVs.
ELVs are vehicles that 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.
The CMA is working closely with the European Commission, which has also launched an investigation into this matter today.
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.
Further detail of the CMA’s procedures in competition cases is available in its guidance, and any updates to this investigation will be made via the dedicated web page: Suspected anti-competitive conduct in relation to the recycling of end-of-life vehicles.
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