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Antitrust - Volkswagen - Prevent USA's litigation over alleged monopolization of VW automotive component parts (US)

Prevent USA filed a US complaint accusing Volkswagen of engaging in an illegal group boycott to maintain its stranglehold over suppliers of VW automotive component parts. According to the complaint, VW’s business model depends on it maintaining market power over its suppliers and keeping its lower tier suppliers small and weak, allowing it to impose abusive conditions on its suppliers and forcing them to operate at razor-thin margins or even at a loss. “This results in sub-optimal output and lower quality goods among Volkswagen’s suppliers, and in the long run, higher prices and reduced quality for the ultimate consumers.”

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