MOSCOW, August 14 (RIA Novosti) - Four BMW dealers in Hubei Province, China, were issued a fine of 1.6 million yuan ($260,000) by regulators for forming a price alliance to manipulate market prices, Xinhua news agency reported Thursday.
This move comes as China beefs up efforts to enforce anti-monopoly laws. The National Development and Reform Commission (NDRC) last week said that it would also punish Chrysler and Audi for monopolistic practices.
According to the news agency, inspectors visited Mercedes-Benz's Shanghai premises and 12 other Japanese companies suspected of monopolistic practices. NDRC said, “They will be punished in accordance with the law.”
Monopolistic practices have caused prices of certain goods in China to cost up to three times as much as they would in the United States or Europe.
Some Japanese car parts manufacturers have turned themselves in to the NDRC in return for a waiver of penalties, in accordance with China’s anti-monopoly laws.
“The reason Japanese parts manufacturers were able to monopolize prices was because they have set up a long-term development plan within their supply chains, which helps reduce costs and improve their technology. As a result, most Japanese carmakers have only one to two suppliers which they rely on for everything. The carmakers are then able to control supply and can even manipulate prices,” Want China Times reported.
