▲ Up
 
19:08 30-04-2016
MAIN АКИpress CA-News
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanMongoliaWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
China finds Mercedes-Benz guilty of price manipulation

Bishkek (AKIpress) - mercedes-benz German car maker Daimler AG's luxury brand division Mercedes-Benz has been found guilty of manipulating prices for after-sales services in China, the official Xinhuanews agency reported, citing authorities in Jiangsu province.

An array of industries, from milk powder makers to tech firms, have been coming under the spotlight in recent years as China intensifies its efforts to bring companies into compliance with a 2008 anti-monopoly law.

That legislation allows the country's anti-trust regulator, the National Development and Reform Commission (NDRC), to impose fines of up to 10 percent of a company's Chinese revenues for the previous year.

The auto industry has been under particular scrutiny, with a wave of investigations in the world's biggest auto market prompting carmakers such as Mercedes-Benz, Volkswagen AG's Audi, and BMW to slash prices on spare parts in recent weeks.

The Jiangsu Province Price Bureau, which launched its investigation last month, found evidence of anti-competitive practices after raiding Mercedes-Benz dealerships in the eastern coastal province as well as an office in neighbouring Shanghai, Xinhua said in its report on Sunday.

On Aug. 5, Mercedes-Benz said it was assisting the authorities in their investigation. A spokesman for the German brand was not immediately available to comment on the Xinhua report.

"It is a typical case of a vertical monopoly in which the carmaker uses its leading position to control the prices of its spare parts, repair and maintenance services in downstream markets," Zhou Gao, chief of the anti-trust investigation at the Jiangsu bureau, told Xinhua.

The Xinhua report did not mention possible penalties. It said replacing all the spare parts in a Mercedes-Benz C-Class could be 12 times more expensive than buying a new vehicle, citing a report from the China Automotive Maintenance and Repair Trade Association.

Early this month the NDRC said it would punish Audi and Fiat SpA's Chrysler for monopoly practices. Chinese media reported last week that Audi would be fined around 250 million yuan ($40.7 million).

Industry experts say automakers have too much leverage over car dealers and auto part suppliers in China, enabling them to control prices, considered as a violation of the country's anti-trust laws.

China's government has in the past few years stepped up its enforcement of the anti-monopoly law, slapping several multinational companies, including Mead Johnson Nutrition Co. and Danone SA, with fines.

The government is conducting an anti-monopoly probe into U.S. tech giant Microsoft Corp, and regulators also recently said U.S. chipmaker Qualcomm Inc. had a monopoly.


Twitterfacebookprint
11:44 18.08.2014
LATEST NEWS
16:51 Telecoms forfeiture case moved into U.S.-Uzbekistan negotiations16:47 President Atambayev, Tajik Foreign Minister discuss bilateral ties16:36 Tajikistan presents its National Action Plan on enhancing chemical, biological, radiation and nuclear security to international community16:33 Exhibits from Turkmenistan on display at New York’s Metropolitan Museum of Art16:26 Kyrgyzstan to celebrate Labor Day on May 116:15 Over 7,500 police officers, 5,500 citizen patrol members to protect public order, safety on May public holidays16:11 Turkmenistan invites Qatar to join TAPI project16:02 Defense Council suggests drastic measures to increase effectiveness of border security – Secretary15:40 Kumtor project restructuring negotiation process ongoing – Minister15:10 2 Kumtor Gold Company Vice Presidents leave Kyrgyzstan after company's raid14:34 Tajikistan denies ban on Russian-style endings in last names14:22 Government promises to resolve financing problem for Assembly of Peoples of Kyrgyzstan14:12 Kyrgyzstan, Afghanistan to set up commission for trade, economic cooperation14:09 Former Vice PM for Defense elected as Chair of Association of People of Kyrgyzstan13:46 Kyrgyz Agriculture Ministry imposes temporary ban on fishing13:17 Centerra Gold Inc. Board of Directors to approve Kyrgyzstan's nominees this May12:39 MPs to meet with their electors next week12:02 President Putin expected to visit Kyrgyzstan this September11:41 13.2% enterprises in Kyrgyzstan cut staff over financial difficulties in Q1 201610:58 Foreign Minister of Tajikistan arrives in Kyrgyzstan on official visit
Astana
+14° C
Ashgabat
+28° C
Bishkek
+19° C
Dushanbe
+27° C
Tashkent
+31° C
Ulaanbaatar
+13° C
exchange rates
 
77.85
68.42
10.55
1.06
373.14
327.66
50.51
5.09
6.85
6.26
1.01
0.12
3286.53
2888.39
446.81
42.81
3.98
3.50
0.54
0.05

© AKIpress News Agency - 2001-2016. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to www.akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75