Nera Capital is broadening its investment portfolio by acquiring 50,000 claims related to a car cartel from the administrator of a Spanish car rental firm. The claims are part of an anticipated legal action targeting several of the largest automobile manufacturers globally. The move is expected to facilitate compensation for thousands of additional claimants in the wake of a seven-year cartel scheme in Spain, which implicated 28 car manufacturers and dealers. Nera Capital’s objective is to resolve claims with an overall commercial value surpassing €1 billion.
In July 2015, The National Commission of Markets and Competition (CNMC) imposed a €117 million penalty on car manufacturers for engaging in anti-competitive behavior. The Commission determined that the car companies participated in exchanges of confidential information to enhance their mutual interests and exert control over the automotive market. These unlawful and restrictive actions, which took place in Spain from February 2006 to July 2013, resulted in consumers facing additional costs ranging from 10 to 15%.
The actions involved a coordinated sharing of confidential and commercially sensitive information, encompassing both present and future data. This exchange pertained to nearly all operations conducted by the companies through their distribution and aftersales networks, including the sale of new and used vehicles, the provision of garage, repair, and maintenance services, as well as the sale of official replacement parts. The combined market share of the brands involved in the conduct accounted for roughly 91% of automobile distribution in Spain, encompassing almost all mainstream brands as well as several premium brands. The inquiry commenced following SEAT’s disclosure of the cartel to the competition authority.
Over the past five years, Spain has established itself as a claimant-friendly jurisdiction for damage claims. The market is also attractive to litigation funders because of the swift nature of legal proceedings and the relatively low costs associated with litigation.
