Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC asked to monitor EU, worldwide auto emissions test fraud investigations, (Oct 27, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has been asked to monitor investigations in several European Union (EU) countries and worldwide into automobile emissions testing fraud, the EC announced today. According to a resolution passed by the members of the European Parliament, vehicle emissions testing fraud should be investigated thoroughly and those responsible should face appropriate sanctions.

In September 2015, the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) notified German auto maker Volkswagen that the company had violated federal and state laws by using a “defeat device”—software that was specifically intended to circumvent vehicle emissions test procedures established by the EPA and CARB. The defeat device is a sophisticated software algorithm that detects when the car is undergoing emissions testing, enables the emissions treatment system in order to produce EPA compliant emissions levels, and then turns off the emissions control systems under normal driving conditions.

Volkswagen has admitted to installing the defeat devices in 11 million diesel vehicles sold around the world, including nearly 500,000 in the United States. Subsequently, the West Virginia Attorney General as well as several consumers and auto dealers have filed suit against Volkswagen.

The EU Parliament resolution welcomes investigations into vehicle emissions test manipulation in several EU countries and worldwide, and supports the EC’s call to national surveillance authorities to conduct extensive checks on a wide range of vehicle makes and models. Where defeat devices are found, EU member state authorities should take all necessary action to remedy the situation and enforce the appropriate sanctions. The investigations should involve the Commission, which is asked to report back to Parliament by March 31, 2016, the resolution states.

Parliament recommends that the EU emissions testing system should be strengthened and urges the Commission to adopt and put in place the new Real Driving Emissions (RDE) test cycle without delay, adding that while current plans for RDE tests would be used only for NOx emissions, these tests should be put in place for all pollutants.

Additionally, the Commission should consider establishing an EU-level surveillance authority. The EU type approval regime should be redesigned to guarantee that type approvals and certificates issued by national competent authorities can be checked independently and can be reassessed by the Commission and by EU countries’ authorities with a view to requiring recalls and halting the placing on the market of vehicles that do not comply with emission limits, according to the resolution.

“The current scandal risks undermining the whole automotive sector, a key contributor to growth, innovation and jobs in a significant number of member states,” the resolution states.

News: Antitrust