EC expected to fine DaimlerChrysler

The automobile maker, DaimlerChrysler, is today expected to be hit by massive fines from the European Commission for breaching competition rules.

It is thought that Mario Monti, the EU Competition Commissioner, will impose a penalty of up to 90m euros (£57m) on the company, following a five-year probe into its sales practices.

Investigators have been examining whether DaimlerChrysler sought to prevent customers – especially Germans – going to another EU country to take advantage of lower prices for its cars in other territories.

They have also investigated whether the company, which makes Mercedes-Benz vehicles, has limited sales to car leasing companies in order to benefit its own leasing business, and if it has sought to dictate the retail prices charged by its dealers. It is alleged that some of these abuses remain in place.

The Commission yesterday refused to comment, but added that Mr Monti will be holding a press conference on the matter at 10.30am today. Although Brussels can levy fines of up to 10 per cent of a company's turnover, in practice fines are imposed at much lower levels.

Mr Monti has singled-out carmakers in his campaign to bring the price of goods down in the EU and tackle price disparities across member states. Earlier this year, Volkswagen was fined 31m euros for preventing its German dealers from offering discounts to customers.