Antitrust regulator probes Mercedes-Benz Korea office after EV fire

[Photo by Yonhap]

South Korea’s antitrust regulator has opened a probe into the local unit of Mercedes-Benz, a German luxury and commercial vehicle brand.

The investigation came after a blaze involving a Mercedes-Benz electric vehicle broke out in the underground parking lot of an Incheon apartment complex on August 1st, 2024. The fire destroyed or damaged more than 140 cars.

The Mercedes EQE vehicle that caught fire used batteries from China’s low-tier battery maker Farasis Energy, Inc. However, a Mercedes-Benz executive stated in a Korean media interview that Contemporary Amperex Technology (CATL), China’s top battery manufacturer, was supplying batteries for Mercedes EVs.

An official from the Korea Fair Trade Commission said the investigation will examine whether the interview falls under false advertisement, as interviews and written articles are also considered ads under the country’s court precedents. If this is found to be the case, the antitrust agency can impose penalties against the automaker for false ads.