European court annuls VW fine

The European Court of First Instance has annulled a €30.96m fine imposed by the European Commission on Volkswagen AG for fixing prices of its Passat model in Germany.

The commission ruled in May 2001 that the company had made a "serious infringement" of competition rules by telling German dealers not to sell the car below the recommended retail price and to limit, or not grant, discounts.

In its ruling, the court said the commission did not prove that VW acted unilaterally with regard to its dealers and that there was therefore no agreement between the parties.

The court said the commission needed to establish Volkswagen and the dealers had entered into an agreement whereby the dealers accept the attitude adopted by the company.