Germany fines carmakers over steel buying cartel

Germany's competition watchdog said Thursday it would fine carmakers BMW, Daimler, and Volkswagen a total of 100 million euros (USD 111 million) for "anti-competitive practices" in buying so-called "long steel". Representatives from the car companies and steel producers met twice a year "between 2004 and the end of 2013" and "discussed" prices for the vital raw material, used for building items like crankshafts, piston rods, and cogs, the Bundeskartellamt said in a statement.

"Where there was no further individual negotiation with the suppliers following these conversations, the competition was prevented" on some elements of the price, the authority said. The companies had acknowledged their participation in the talks and accepted the fine, it added.

Thursday's fine is separate from a competition probe by the European Commission into BMW, Mercedes-Benz parent Daimler and VW, who are suspected of agreeing not to compete on emissions reduction technologies. And still another investigation by the German competition watchdog targets "flat steel", where several producers including Thyssenkrupp are suspected.

German media reported that the total fine in the last case could mount to 500 million euros, spread among around a dozen producers accused of agreeing on prices. The Bundeskartellamt has recently mounted several probes into the steel industry, levying a 205 million euro fine against six stainless steel producers in July 2081.