Auto parts supplier Prevent sues Volkswagen for suppressing competition

(Reuters) - Volkswagen parts supplier Prevent Group on Monday filed a lawsuit alleging the German automaker used anticompetitive tactics to stop larger suppliers like the company from acquiring smaller rivals in the United States. In the lawsuit filed in the U.S

Reuters November 19, 2019 04:06:53 IST
Auto parts supplier Prevent sues Volkswagen for suppressing competition

Auto parts supplier Prevent sues Volkswagen for suppressing competition

(Reuters) - Volkswagen parts supplier Prevent Group on Monday filed a lawsuit alleging the German automaker used anticompetitive tactics to stop larger suppliers like the company from acquiring smaller rivals in the United States.

In the lawsuit filed in the U.S. District Court in Detroit, the auto parts supplier said Volkswagen extracted written agreements from suppliers not to sell themselves to Prevent Group.

Volkswagen did not immediately respond to a Reuters request for comment.

The company, which is seeking damages in excess of $750 million(579.20 million pounds), said that after the diesel emissions scandal, Volkswagen used its market power to squeeze smaller suppliers and stop any acquisitions to cut costs.

Volkswagen's lower-tier suppliers had no choice but to suffer bankruptcy or comply with Volkswagen's "unfair terms and prices", Prevent said in a statement.

In 2016 https://reut.rs/2OnW5fN, Volkswagen and two of its suppliers, a part of Prevent, resolved a contract dispute that had hit output at more than half of the automaker's German plants and threatened to undermine its recovery from the diesel emissions scandal.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

France confirms it will read black boxes of downed Ukrainian jet, Canada to help
World

France confirms it will read black boxes of downed Ukrainian jet, Canada to help

By Tim Hepher and David Ljunggren PARIS/OTTAWA (Reuters) - France said on Friday it would download the black boxes from a Ukrainian airliner downed by an Iranian missile in January, easing a stand-off over where they should be read. France's BEA crash investigation agency said it was acting at the request of Iran, which remains responsible under global rules for conducting a formal accident probe after acknowledging that the Boeing 737 was downed by its forces

Texas and Florida crack down on bars, reversing coronavirus reopening
World

Texas and Florida crack down on bars, reversing coronavirus reopening

By Brad Brooks LUBBOCK, Texas (Reuters) - With new coronavirus cases surging in Texas and Florida, officials in both states on Friday ordered bars to close again and imposed tighter restrictions on restaurants, setting back efforts to reopen their economies. Governor Greg Abbott gave bars in Texas until midday Friday to shut, while Florida's Department of Business and Professional Regulation told bars to immediately stop serving alcohol on their premises

U.S. Senate backs bill to punish China over Hong Kong
World

U.S. Senate backs bill to punish China over Hong Kong

By Patricia Zengerle WASHINGTON (Reuters) - The U.S. Senate passed legislation on Thursday that would impose mandatory sanctions on people or companies that back efforts by China to restrict Hong Kong's autonomy, pushing back against Beijing's new security law for the city. The measure also includes secondary sanctions on banks that do business with anyone found to be backing any crackdown on the territory's autonomy, potentially cutting them off from American counterparts and limiting access to U.S.