🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

EU court adviser says Italy antitrust fine may breach Volkswagen's rights

Published 03/30/2023, 05:22 AM
Updated 03/30/2023, 05:25 AM
© Reuters. FILE PHOTO: The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir
VOWG_p
-

By Foo Yun Chee

BRUSSELS (Reuters) - An Italian antitrust fine levied on Volkswagen (ETR:VOWG_p) over its defeat devices may have infringed the German carmaker's right not to be penalised twice for the same offence, an adviser to Europe's top court said on Thursday.

The case came before the EU Court of Justice (CJEU) after Volkswagen challenged a 5 million euro ($5.4 million) Italian antitrust fine levied in 2016 for its misleading advertising about its cars fitted with illegal defeat devices.

Volkswagen separately paid a 1 billion euro German fine in 2018, with the scandal costing it more than 32 billion euros in refits, fines and legal costs so far.

The Italian court in its 2019 ruling rejected Volkswagen's appeal, saying there was no double jeopardy involved as the Italian fine derived from a different legal basis.

Volkswagen took its case to the Italian Council of State which then sought advice from the CJEU.

Advocate General Manuel Campos Sanchez-Bordona said in a non-binding opinion it could be a case of double jeopardy, which means that people cannot be charged twice for the same offence and which ensures legal certainty and equality.

"The two proceedings relate to the same legal person (Volkswagen), and that the facts penalised are identical in substance and time," he wrote.

He said there appeared to be no coordination between the Italian and German authorities to avoid double jeopardy.

"Volkswagen cannot be penalised in Italy for 'Dieselgate', after having been penalised in Germany, if there has not been sufficient coordination between the penalty proceedings of both States," Campos Sanchez-Bordona said.

The CJEU, which usually follows four out of five recommendations, will rule in the coming months.

© Reuters. FILE PHOTO: The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir

The case is Opinion in Case C-27/22 Volkswagen Group Italia and Volkswagen Aktiengesellschaft.

($1 = 0.9210 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.