The Competition and Markets Authority (CMA) has launched an investigation into suspected anti-competitive conduct in relation to the recycling of scrap vehicles.
The CMA says it 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 all types of scrapped cars and vans, including old ‘end-of-life vehicles’ and insurance write-offs.
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There are numerous laws around storing and recycling dead vehicles in a way that isn’t harmful to the environment. Vehicle manufactures must offer their customers a free service for recycling ELVs, a service most outsource to third parties.
The CMA is working closely with the European Commission, which has also launched an investigation into this matter this week.
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, although it is quick to point out that ‘no assumptions should be made’ about whether competition law has been broken at this stage.
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