Mitsubshi Electric and Hitachi were penalized for manipulating the car parts price. European Union fined the companies €137.8m (£105m) for fixing the price of car alternators and starters.
The second leading car parts manufacturer Denso Company spilled the issue about the Mitsubishi and Hitachi's illegal acts first hand. Denso was reportedly aware of the car parts cartel but did not have sufficient evidence back then. Now, Denso has been saved from the penalty because of telling the government officials about the illegal activity.
BBC News reported that, both companies have been meeting each other between the years 2004 and 2010. According to Competition Commissioner Margarethe Vestager, "Breaking cartels remains a top priority for the Commission, in particular when they affect important consumer goods, such as cars."
Moreover, the Commissioner added that "Today's decision sanctions three car part producers whose collusion affected component costs for a number of car manufacturers selling cars in Europe, and ultimately European consumers are buying them. If European consumers are affected by a cartel, the Commission will investigate even if the cartel meetings took place outside Europe," Headline News reports.
The government fined them for about €137.8m (£105m). Both companies will be seeing their penalties decreased for about 10% as an outcome of their illegal measures and involvement in the case.
Cartels are widely known in the industry business, but the European government did not expect that the Mitsubishi and Hitachi will be involved on this illegal matter. The investigation proved that they violated the law of pricing and supply with enough evidences and data to pin down both companies.
As reported by Sky Chronicle News, the decision of the union is part of the series of investigations about the cartels in automobile industry. The commission has already fined the violators for the manipulation of car parts such as automotive bearings, wire harnesses, foam used in car seats and parking heaters. The union is still looking for the possibility that more parts are also manipulated by both companies including car thermal systems, car lighting, seat belts and steering wheels, car exhaust systems and electrolytic capacitors.
After the investigation, both companies will be back on track. Their business is still operating and they are still considered "one of the best" when it comes to automotive industry.
