Tesco has launched a legal battle against Scania, alleging losses due to anti-competitive practices in the HGV sector.
- The claim centres around Scania’s involvement in a cartel that manipulated truck pricing and emission technology costs from 1997 to 2011.
- A 2017 European Commission decision, which fined Scania €880.5m, forms the basis of Tesco’s legal action.
- Scania’s recent appeal against the antitrust fine was dismissed, maintaining the company’s legal woes.
- The Road Haulage Association supports compensation claims for affected truck operators.
Tesco has taken decisive legal action, initiating a claim for damages against Scania in the competition appeal tribunal. The supermarket giant accuses Scania of engaging in “unlawful and anti-competitive behaviour” that negatively impacted its business operations. According to Tesco, the allegations pertain to Scania’s role in a cartel that influenced truck pricing and the dissemination of emission technology costs throughout the European Economic Area over a 14-year period, from 1997 to 2011.
The foundation for Tesco’s claim is a pivotal 2017 European Commission ruling. This decision imposed a substantial fine of €880.5m on Scania AB and its affiliates, citing their refusal to settle an antitrust case. Other prominent truck manufacturers, including Daimler, MAN, Iveco, DAF, and Volvo/Renault, were also implicated but chose to acknowledge their involvement.
Scania’s attempts to challenge this ruling have proven unsuccessful. In 2022, the company’s appeal was dismissed, and further efforts to overturn the decision at the European Court of Justice met the same fate in February of this year. This ongoing litigation underscores the serious repercussions of breaching EU competition rules and the resilience of legal proceedings in such matters.
While both Tesco and Scania have refrained from commenting on the ongoing legal proceedings, the case continues to attract attention. Notably, the Road Haulage Association (RHA) is actively involved, collaborating with the law firm Backhouse Jones to pursue compensation for affected truck operators. This action is intended to aid all operators, regardless of their membership status with the RHA, signifying the widespread impact of the alleged cartel activities.
In a related development, the wider implications of the cartels involving prominent truck manufacturers are becoming increasingly evident. Thousands of HGV operators, represented by the RHA, have advanced towards securing compensation, following the Court of Appeal’s recent rejection of a legal challenge by DAF and MAN. This outcome further empowers the Competition Appeal Tribunal in seeking justice for overcharged companies.
The ongoing legal proceedings highlight the significant impact of anti-competitive practices on the commercial vehicle sector.
