EU fines BMW and Volkswagen €875m over diesel emissions

The EU's executive arm fined BMW, Volkswagen and its Audi and Porsche brands. Daimler, which also took part in the cartel, escaped a fine because it alerted regulators. All the companies acknowledged taking part in the cartel and agreed to settle, the commission said.

The carmakers collaborated to produce technology to reduce nitrogen oxide emissions of new diesel cars but they decided not to compete on fulfilling its potential. By agreeing not to compete for more than five years they broke EU rules.

The companies indicated to each other that they would meet the legal minimums but not go further in limiting emissions. Doing so stifled innovation and blocked the development of cleaner engines, the commission said.

"Companies must not coordinate their behaviour to limit the full potential of any type of technology," commission vice-president Margrethe Vestager said. "Companies must not restrict their competition on performing better than what is required by law and they should continue to compete to the benefit of the consumers. Agreeing not to do so is simply illegal."