Scania Fails To Wiggle Itself Out of a Huge Fine

The European Commission (E.C.) found out that Scania participated in collusive arrangements, which basically means they had enough of competing with other companies and wanted to just be done with it. Unfortunately for them, the E.C. imposed a huge fine on Scania - and it stands.
Scania fined for cartel behavior 7 photos
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In 2017, the E.C. decided that truck makers are overdue for an inspection. After some careful analysis over the span of four years, the authorities found out major European companies in this sector participated in something of a a cartel. It sounds awful, but it isn’t really that bad. This just means manufacturers agreed to stop innovating and secretly vowed not to take any actions that might prove to be useful for customers or may provide a competitive advantage in the market.

Initially, Scania agreed to admit its guilt and worked with the E.C. on a settlement. The lawyers somehow ended up advising the truck manufacturer to leave the talks and the European authorities continued their investigation. In the end, the findings were clear: Scania did in fact participate in a cartel from 1997 to 2011. Naturally, a huge fine was to come out of this. The Volkswagen-owned Swedish truck maker was ordered to pay €880,523,000 (approx $1 billion). Ouch!

Understandably, Scania disagreed. It addressed the European Court of Justice (ECJ) on the matter in 2018. They didn’t argue their innocence, but rather said that the procedure the E.C. followed was not entirely legal. Scania lawyers said the presumption of innocence was ignored. Mind you, this was spoken after Scania agreed to participate in settlement talks.

Furthermore, Scania did not deny that it had the opportunity to submit all the evidence to challenge the facts and evidence on which the Commission relied for applying the fine. They had one shot, one opportunity, but didn’t seize what they wanted.

After four long years, the judges confirmed the E.C. was right. The recently passed ruling forces Scania to finally pay what it owes for its crimes and also affirms yet again that the truck maker directly participated in all the relevant aspects of the cartel.


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