€100m fine for BMW, Merc and VW

[Mancstar]

BMW, Daimler & Volkswagen fined €100m after forming cartel to buy steel

Is it just me, dont see the issue with whats happened here?
Merc, BMW, VW fined for forming a group together and purchasing steel in bulk as 1 party? Obvs have read the article and the issue is the supplier not being able to negotiate with individual companies on the surcharge then surely they could increase the price of the steel!
Got me thinking how much money they may have saved with the fine being 100mill!

 

[Tonygw]

I think its the govement trying to be squeeky clean hypocrites here. I would imagine BMW, Daimler & volkswagen factored in the fine in the whole process.

And even with a 100M fine they still get a better deal than without each other.

I agree, I really dont see an issue...

 

[Deleted member 11979]

If that’s the case how come Mercs rust and the others don’t?

 

[Alfie]

Who has fined them?

 

[Yex]

Probably a section of the regulatory body BaFin which is the German equivalent of our FCA.

Given the trades took place over a near 10 year period and they all went directly through steel makers these trades were unlikely to have been passed through the market and as such were in breach of price discovery rules.

As mentioned above this is the National Competent Authority trying to look whiter than white, possibly after the recent debacle over direct German Government financial support for German firms directly impacted by the collapse of Thomas Cook.

 

[Mancstar]

Who has fined them?

Germany’s federal cartel office. As Yex has mentioned they have regulatory powers like our FCA.