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Investigation launched into illegal recycling of cars and vans

An investigation has been launched in the UK today into suspected anti-competitive conduct in relation to the recycling of old or written-off vehicles.

The Competition and Markets Authority (CMA) has said it has “reason to suspect” anti-competitive behaviour has taken place involving a number of vehicle manufacturers, and some industry bodies.

This conduct relates to arrangements for recycling old or written-off vehicles, specifically cars and vans, which are known in the industry as ‘end-of-life vehicles’ or ELVs.

ELVs are vehicles that are categorised as waste, generally due to age-related failure or accident, and regulation requires these vehicles to be disposed of in a sustainable way.

Vehicle manufactures must offer their customers a free service for recycling ELVs, a service manufacturers often outsource to third parties.

The CMA said it is working closely with the European Commission, which has also today launched an investigation into this matter.