Marcus De Guzman / Mercedes-Benz | April 24, 2015 14:11
For alleged price fixing
Mercedes-Benz is reportedly facing a hefty fine amounting to CNY 350 million (about USD 56.5 million) after Chinese authorities in the Jiangsu province found the automaker guilty for monopolizing prices in the eastern province.
Based on a report by Automotive News, the Jiangsu pricing bureau stated that the company had violated the country's anti-monopoly law by pressuring dealers to put up a minimum sales price on some of its nameplates and spare parts, and even gave warnings to dealerships that will not comply.
“The investigation found Mercedes-Benz and its dealers in Jiangsu came to and carried out monopoly agreements to cap the lowest sales prices of E-class, S-class models and certain spare parts,” said a Jiangsu price regulator.
In an official statement, Mercedes-Benz China said that they accept the charges and that they will take full responsibility.
“Mercedes-Benz China accepts the decision and takes its responsibilities under the competition law very seriously. We have taken all appropriate steps to ensure to fully comply with the law.”
Besides handing the staggering fine to the automaker, the pricing bureau also fined some Mercedes-Benz dealers which amounted to CNY 7.7 million (about USD 1.2 million)
Source: Automotive News