PolicyPulse.pro

PolicyPulse.pro identifies the news that matters most to your company and helps you understand the business impact.

Peugeot Fined EUR 15 Million for Abusing Market Power in Automotive Sector

17.09.2024 | 🇦🇹 Austrian competition authority

Peugeot has been fined EUR 15 million by the Cartel Court for abusing its dominant position in the new car sales and workshop operation markets from 2017 to 2021, with the automotive market remaining under scrutiny.


Peugeot was found to have abused its dominant position in the new car sales market by engaging in practices such as tying bonus payments to customer satisfaction survey results, setting excessively high sales targets, and selling at unfairly low prices through affiliated dealerships.

In the workshop operation sector, Peugeot was penalized for imposing economically burdensome conditions on warranty and guarantee work, as well as conducting such work at unprofitable rates.

Additionally, Peugeot was found to have improperly passed on costs of mystery shopping and audits to another company, further violating competition laws.

Peugeot ultimately admitted to the violations, agreeing with the Competition Authority's assessment and the imposed fine, acknowledging the seriousness of the breaches and the period during which they occurred.

The General Director for Competition emphasized the importance of combating abuses of dominant market positions, stating that such actions can significantly harm market competition.

The Competition Authority continues to monitor the automotive market closely, urging individuals with evidence of misconduct to report through the whistleblowing system to ensure market integrity.

The entire legal process involved the filing of a complaint by a company against Peugeot, detailed submissions by the Competition Authority, court hearings, a ruling by the Cartel Court, an appeal by Peugeot to the Supreme Court, and the final imposition of the fine by the Competition Authority based on established violations.

Consult source

Terms of Service | Refund Policy | Privacy Policy | Coverage

© 2024 PolicyPulse. All rights reserved.

See something you like or don't like? Let us know!