Mercedes-Benz fined in China for monopoly

Mercedes-Benz fined in China for monopoly

News reports today say, Mercedes-Benz, luxury car maker Daimler AG subsidiary company of manipulating the price obtained after sales service in China.

According to the Xinhua news agency reported, in recent years, companies in several industry sectors already be cited, along with increased enforcement taken China to urge the company adhere to the anti-monopoly regulations introduced in 2008.

The law allows the anti-monopoly authority of the National Development and Improvement Commission (NDRC) to impose a fine of up to 10 per cent from the previous year's income of the company in China.

Even the automotive industry there is not left behind in the attention of the authorities, resulting in a number of manufacturers such as Mercedes-Benz, Audi and BMW parts prices down recently.

However, the Price Bureau of Jiangsu Province in their investigation into last week, found evidence of anti-competitive practices after raided a Mercedes-Benz dealership in the region adjacent to Shanghai.

Where Automotive Inspection and Maintenance Trade Association China Automotive, find the cost of replacing all the components of the Mercedes-Benz C Class can be 12 times more expensive than buying a new car.

However, on 5 August, Mercedes-Benz reported being helped siasatau is announced.

Recently, the NDRC also issued a statement would punish Audi (VW) and Chrysler (Fiat) for monopolistic practices. Chinese media reported last week, Audi will be fined about 250 million yuan (RM128.3 million).

Industry experts said the automaker has too much control over its dealers and component suppliers in China, allowing them to control the price, conditions considered in violation of anti-monopoly regulations in that country.