Baltimore Sun

DOJ drops its antitrust probe against automakers

- By Coral Davenport

WASHINGTON — The Justice Department has dropped its antitrust inquiry into four automakers that had sided with California in its dispute with the Trump administra­tion over reducing climatewar­ming vehicle pollution, deciding that the companies had violated no laws, according to people familiar with the matter.

The i nvestigati­on, launched last September, had escalated a dispute over one of President Donald Trump’s most significan­t rollbacks of global warming regulation­s. The Justice Department’s move was one of a slew of seemingly retributiv­e actions by the White House against California, as the state worked with Ford Motor Co., Volkswagen of America, Honda and BMW to defy Trump’s planned rollback of national fuel economy standards.

A spokeswoma­n from Ford confirmed last week that the company had been notified that the investigat­ion was closed. Representa­tives from BMW, Volkswagen and Honda did not respond to requests for comment. The Justice Department did not release a statement.

The Justice Department’s decision could boost the efforts of the auto companies and California to move ahead with tighter vehicle pollution standards than those being finalized by the federal government.

California Gov. Gavin Newsom, welcomed the news. “These trumped-up charges were always a sham — a blatant attempt by the Trump administra­tion to prevent more automakers from joining California and agreeing to stronger emissions standards,”

In July, the four automakers announced that they had reached an agreement in principle with California on emissions standards that would be stricter than those being sought by the White House. The announceme­nt came as an embarrassm­ent for the Trump administra­tion, which assailed the move as a “PR stunt.”

The Justice Department then opened an investigat­ion into whether the four automakers violated federal antitrust laws by working together to reach their deal with California, on the grounds that the agreement could potentiall­y limit consumer choice.

At the time Makan Delrahim, the assistant attorney general of the Justice Department’s antitrust division, wrote in an opinion article in USA Today that the investigat­ion was not politicall­y motivated.

In the months after California struck the deal with the automakers, the administra­tion and Justice Department pushed an unusual series of legal and policy moves against California and the auto companies that backed the state’s climate change plan. In September, the Trump administra­tion formally revoked California’s legal authority to set tougher statelevel vehicle emissions standards than those set by the federal government.

The Justice Department then filed suit to force California to drop the Canadian province of Quebec from its carbon emissions market, a central effort to limit greenhouse gases from power plants by capping emissions and forcing polluters to buy permits to emit climate-warming carbon dioxide. The Justice Department argued that including Quebec was tantamount to a state illegally conducting foreign policy.

Also in September, the Environmen­tal Protection Agency threatened to withhold federal highway funding from California if it did not address a decadeslon­g backlog of air pollution control plans.

In the coming weeks, the administra­tion is expected to finalize a rule that would permanentl­y roll back the federal Obama- era standards, which would have required automakers to roughly double the fuel economy of their new cars, pickup trucks and SUVs by 2025.

Under those rules, new vehicles would have had to average about 54 mpg. The Trump administra­tion’s plan will roll back that standard to about 40 mpg.

 ?? JUSTIN SULLIVAN/GETTY 2019 ?? Honda was one of four automakers at the center of an antitrust inquiry by the Department of Justice.
JUSTIN SULLIVAN/GETTY 2019 Honda was one of four automakers at the center of an antitrust inquiry by the Department of Justice.

Newspapers in English

Newspapers from United States