Volkswagen Avoids Major Fine Due to Procedural Error by Authorities

Volkswagen has successfully evaded a hefty fine related to data protection violations stemming from the company's handling of the emissions scandal. The fine, originally set at EUR4.3 million, will not be enforced after a procedural oversight by the public prosecutor's office, as confirmed by a spokesperson from the Hannover prosecutor's office.

The issue revolves around the sharing of sensitive data with Larry Thompson, a U.S. monitor appointed following the uncovering of the emissions scandal. Critics, including the state data protection officer, pointed out that Volkswagen failed to properly inform its employees about this data sharing, thus breaching the General Data Protection Regulation (GDPR).

Initially, Volkswagen contested the fine in the Hannover District Court and won. However, the public prosecutor's office appealed the ruling to the Higher Regional Court but had to withdraw the appeal due to a significant technical error: the requisite signature from the responsible prosecutor was missing from the documentation. This procedural misstep has led to the conclusion that Volkswagen will not face the imposed fine, and the District Court's ruling in favor of the company remains valid.

The prosecutor's office characterized this situation as a unique incident resulting from a series of unfortunate circumstances, citing the high workload within the department. In light of this, the opposition CDU faction in the Lower Saxony Parliament has labeled the error a scandal and intends to deliberate on the matter in the legal committee. They argue that this is not merely a minor oversight but a serious error that could inflict significant financial repercussions on the state of Lower Saxony.

Despite escaping the fine, Volkswagen did not achieve a complete victory regarding the underlying data protection issue. A week ago, the company faced a ruling from the Administrative Court regarding several reprimands issued by the state data protection officer in 2023. While two of the five warnings were overturned, the primary reprimand concerning inadequate data protection information--which was the basis for the fine--remains intact. This ruling is not yet final, as Volkswagen has the option to appeal to the Higher Administrative Court. Nevertheless, the outcome of this case will no longer influence the status of the fine.

The emissions scandal came to light in the fall of 2015 when it was revealed that Volkswagen had manipulated diesel engine emissions tests in the United States. Since then, the legal consequences of this scandal have cost the company over EUR32 billion.