Germany, Daimler, and Deutsche Telekom partner on road toll arbitration

Deutsche Telekom

Germany’s Federal Ministry of Transport, Daimler and Deutsche Telekom have reached an agreement, to end the road toll arbitration proceedings. This settlement puts an end to a 14-year legal dispute regarding the delayed implementation of a system for the collection of road tolls for heavy trucks in Germany.

The settlement amount totals around EUR 3.2 billion. It takes previous payments to the German state into account and includes a one-time final payment of EUR 550 million by Deutsche Telekom.

As the arbitral tribunal has not been able to reach a decision in 14 years and a decision is not expected in the foreseeable future, board members of Daimler and Deutsche Telekom and the transport minister met and in intensive negotiations were able to agree on terms for a settlement. The settlement now provides legal certainty for the companies and the German government.

Toll Collect, the reliable operator of Germany’s road toll system, has collected more than EUR 50 billion for the German state over the past years. Mid-year, the company will begin collecting tolls on an additional 40,000 kilometers of federal roads. Daimler and Deutsche Telekom each hold 45 percent of Toll Collect, with the remaining ten percent held by French company Cofiroute.

Thomas Kremer, Deutsche Telekom Board of Management member responsible for wData Privacy, Legal Affairs and Compliance, welcomed the agreement: “Deutsche Telekom examined the risks and opportunities associated with further pursuit of the arbitration process extensively, from both a legal and business perspective, and believes that the settlement is the best possible solution. A 14-year legal dispute will come to an end in fairness and respect. With this step, Deutsche Telekom continues in its pursuit to reduce the Group’s legal risks.”