Mercedes 'guilty of price fixing' in China
Fines of up to 10% of a company’s China revenues can be imposed under a 2008 anti-monopoly law
Monday 18 August 2014
Mercedes-Benz could face a multi-million-pound fine after the carmaker was reportedly found guilty of artificially inflating the cost of spare parts in China.
Regulators claimed the luxury unit of Daimler used its power to regulate the level of parts, boosting the price, according to the official Xinhua news agency. It follows similar investigations into BMW, Audi and Chrysler.
Fines of up to 10 per cent of a company’s China revenues can be imposed under a 2008 anti-monopoly law. The Jiangsu Province Price Bureau raided several Mercedes-Benz dealerships in the province and an office in Shanghai.
“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, told Xinhua.
The agency claimed the cost of replacing all the parts of a Mercedes-Benz C Class could be the same as buying 12 new cars.
Mercedes-Benz today said: “We confirm we are assisting the authorities in their investigation. Please understand that we are unable to comment further on what is still an ongoing matter.”
- 2 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 3 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...