Europe’s second highest court on Tuesday reduced a fine against General Motors’ Dutch unit Opel to €35.5 million from €43 million, Dow Jones reported.
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The European Union Commission imposed the original penalty in 2000 for flouting rules promoting Europe’s single market. Regulators accused Opel of forcing Dutch dealers to stop selling cars to customers from neighbouring countries where Opels cost more, the report added.
On Tuesday, according to Dow Jones, the Luxembourg-based Court of First Instance agreed that the “very serious” restrictions imposed by Opel should be punished but the court criticised some of the Commission’s calculations, saying its decision did “not contain sufficient proof that supplies to dealers were limited.”
Dow Jones noted that the case is part of a broader crackdown against car sales practices in Europe where some of the world’s biggest car manufacturers have paid stiff fines for pressuring dealers and short-changing consumers.
New rules went into effect this month aimed at freeing up the continent’s car market. They are designed to allow dealers to sell multiple brands and separate service from sales but regulators still are worried manufacturers will try to undermine the reform, the report added.
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By GlobalDataSo far Europe’s courts have backed the Commission’s campaign – but they have been willing to reduce penalties, Dow Jones said.
In 1998, the Commission fined Volkswagen €102 million for restricting Italian distributors from selling its cars to German and Austrian customers. The Court of First Instance later lowered the fine by €12 million because the Commission failed to prove Europe’s biggest car maker punished some franchises for cross-border selling, Dow Jones said.
In 2001, the Commission fined DaimlerChrysler €72 million for interfering with dealers’ freedom to determine prices and discounts but DaimlerChrysler has appealed that decision, the report said.
According to Dow Jones, a similar probe is under way against Peugeot SA – in April, regulators collected documents at Peugeot offices and dealerships in France, Germany, the Netherlands and Denmark.
