Chinese Regulator Fines Audi, Chrysler In Anti-Monopoly Probe
International Business Times
Published Sep 11, 2014 08:14AM ET
Updated Sep 11, 2014 08:30AM ET
Chinese Regulator Fines Audi, Chrysler In Anti-Monopoly Probe
By Avaneesh Pandey - A Chinese regulator imposed hefty fines on foreign automobile manufacturers Audi and Chrysler on Thursday after they were found guilty of violating the country’s anti-monopoly laws in August, according to media reports.
The Chinese government, imposing a fine of $40.5 million on Volkswagen’s Audi AG (ETR:NSU) and $5.2 million on Fiat’s Chrysler, reportedly said that the two companies had violated the law by fixing the prices of vehicles and spare parts with dealers.
The penalty has raised the possibility of similar fines being levied on other automobile manufacturers such as Daimler AG's (OTCMKTS:DDAIF) Mercedes-Benz and Tata Motors Limited's NYSE:TTM Jaguar Land Rover, which have also been found guilty of indulging in anti-competitive behavior in the country.
In addition, the National Development and Reform Commission, or NDRC, which is heading the probe against the automobile companies, also fined three Chrysler dealerships and eight Audi dealerships after they were found complicit in fixing the prices of spare parts.
“We accept the penalty and we have been optimizing the management processes and sales and dealership structure,” an Audi spokesperson told the Financial Times. A Chrysler spokesperson also told The Wall Street Journal that the company “respects and accepts the final ruling.”
Since the beginning of the year, Chinese regulators have launched a series of investigations targeting foreign car manufacturers, including Mercedes, BMW (ETR:BMW), Chrysler, Audi and Tata Motors. Chinese authorities have alleged that these companies had violated the 2008 Anti-Monopoly Law.
Addressing allegations that China was deliberately targeting foreign companies, Xu Kunlin, a senior official at NDRC, reportedly said: “We do not select which companies to look into -- the consumers do the selecting. We investigate the companies where we receive well-grounded complaints.”
Get The News You Want
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.