Alleged Collusion on Technology by German Car Manufacturers

The KFTC investigated the allegation that BMW and other German automakers (“OEMs”) agreed to delay the development of environmental technology for automobiles. Specifically, the KFTC found that the OEMs agreed to delay adopting Otto Particulate Filters (“OPF”) on gasoline passenger cars and in Selective Catalytic Reduction (“SCR”) software on diesel passenger cars that converts from full dosing mode to online dosing mode under specific conditions, issuing an Examiner’s Report to BMW and the other OEMs. 

Lee & Ko effectively responded on behalf of BMW to the allegations related to SCR software and the OPF. The KFTC, in accepting Lee & Ko’s arguments, completely dismissed the allegation on OPF and reduced the administrative fine significantly compared with the amount suggested in the Examiner’s Report for the allegation on SCR software.