Daimler will a EUR870m (US$957m) for breaking diesel emissions regulations, German prosecutors told reporters on Tuesday.
The automaker told Reuters it would not appeal against the penalty and was keeping its earnings forecast unchanged.
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The fine ended some of the legal uncertainty surrounding the Stuttgart-based company's own variation of German rival VW's 'dieselgate' which is set to reach a Saxony court soon.
The Stuttgart prosecutors told Reuters the Daimler fine had no impact on ongoing proceedings into alleged manipulation by some individuals of engine software used in some of the automaker's diesel cars.
The prosecutors' office reportedly said Daimler had negligently violated its supervisory duties starting in 2008. As a result, certain diesel vehicles were certified despite exceeding emissions thresholds in some cases.
"It is in the company's best interest to end the administrative offence proceeding in a timely and comprehensive manner and thereby conclude this matter," Daimler said, confirming to the news agency it would not appeal.
Reuters noted that, in May 2017, German prosecutors searched Daimler offices as part of a fraud inquiry related to possible manipulation of exhaust gas after treatment in diesel cars.
Separately, Daimler also still faces regulatory scrutiny by US authorities.
In February 2016, the US Environmental Protection Agency asked Mercedes-Benz to explain emissions levels in some of its diesel cars.
Last June, Daimler cut its 2019 earnings outlook after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros.
