The Chinese Bureau of Commodity Prices said that between 2013 and 2014 Mercedes had issued instructions to dealers in the eastern Jiangsu province, advising them to stick to minimum prices for some of its car models, the New York Times reported.
The regulator described it as an attempt by the Daimler-owned firm to establish market dominance that would hurt the interests of local consumers. China has the world's largest car market.
Mercedes said it respects the regulator's decision and will comply with its order.
Last year, Chinese anti-trust authorities fined another German carmaker Audi, US company Chrysler and 12 Japanese automakers for violating its anti-trust laws. China stressed it did not differentiate between local and foreign companies.
