The Chinese government said yesterday it has concluded Mercedes-Benz violated its anti-monopoly law and charged excessive prices for parts, adding to a growing number of global automakers snared in an investigation of the industry.
Regulators found the luxury unit of Germany’s Daimler AG engaged in “vertical price-fixing” by abusing its control over the supplies of replacement parts, Xinhua news agency reported.
It said investigators from the Jiangsu Province Price Bureau found prices were so high that purchasing the parts used to make one Mercedes C class car would cost the equivalent of buying 12 vehicles.
An official said earlier that Volkswagen AG’s Audi unit and Fiat Chrysler Automobiles NV’s Chrysler would face unspecified punishment for violating the anti-monopoly law.
Chinese regulators have launched investigations of foreign auto, technology, pharmaceutical and dairy companies over the past two years using the 2008 anti-monopoly law in an apparent effort to force down consumer prices.
“Mercedes-Benz is a typical case of vertical price fixing — that is, the use of its dominant position in after-market parts to maintain price controls,” head of the Jiangsu Price Agency’s anti-monopoly unit Zhou Gao said.
It gave no indication what penalty Mercedes-Benz might face.
Yesterday’s report gave the clearest explanation to date of the grounds for the Chinese investigation of automakers.
Industry analysts have suggested regulators were motivated by complaints global automakers use their control over components suppliers to charge inflated prices.
Toyota Motor Co has said its Lexus unit is also under scrutiny. General Motors Co’s main China joint venture said last week it has responded to requests by regulators for information, but gave no indication it was the target of a formal investigation.
Other companies under investigation include Qualcomm Inc and Microsoft Corp.
Mercedes and Audi responded earlier to the investigation by cutting prices for replacement parts such as windshields by up to 38 percent. Chrysler cut prices of imported vehicles.
In a statement last week the EU Chamber of Commerce in China expressed concern foreign companies might be “disproportionately targeted” by regulators.
The chamber said it had received reports of “intimidation tactics” taken by regulators who pressure foreign companies to accept punishments without a full hearing or the involvement of their respective governments.
“Competition law should not be used as an administrative instrument to harm targeted companies or serve other aims, such as administratively forcing price reductions,” the chamber said.
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