THE European Commission has lost its appeal against a decision to erase a €30.96 million fine it had imposed on Volkswagen for pressuring its German dealers into refusing discounts.

It had been levied because the EC felt VW had infringed European Union (EU) competition rules but, at the appeal, the European Court of Justice agreed with its sister Court of First Instance that cancelled the fine. The EC argued that judges had underestimated the strictness of VW resale dealer contracts but the senior ECJ disagreed.