China has fined 10 Japanese automotive parts firms a total of $A217 million for price-fixing in what Chinese media have called “the biggest-ever penalty for violating the anti-monopoly law”.
The companies were found to have implemented monopoly pricing agreements for more than 10 years, says the National Development and Reform Commission (NDRC) regulator in a statement.
The NDRC, one of several Chinese government bodies that investigates monopoly actions, says in early August it was probing car firms including Audi, Chrysler as well as the 12 Japanese companies for possible violations.
It is the latest in a series of inquiries in various fields which have raised investor concerns that foreign firms are being targeted.
It fined them a total of 1.24 billion yuan ($A217.47 million), in what state broadcaster CCTV said was the biggest fine China had imposed since its anti-monopoly law took effect in 2008.
“The companies … unlawfully affected prices of auto parts, finished vehicles and bearings in China and harmed the interests of downstream manufacturers and consumers,” says the NDRC statement.
“Sumitomo Electric was fined the most – 290.4 million yuan (A$50.7 million) – of the seven car parts firms penalised for fixing auto parts prices between January 2000 and February 2010,” it says.
The others were Denso, Aisan, Mitsubishi Electric, Mitsuba, Yazaki and Furukawa Electric. NSK, JTEKT and NTN were fined for price collusion over bearings between 2000 and June 2011, the NDRC added, with NSK ordered to pay 174.9 million yuan.
Two other companies, Hitachi Auto Parts and Nachi, which makes roller bearings, were found culpable, but exempted from the penalties for taking the initiative to inform authorities and providing crucial evidence on the monopoly agreements, according to the NDRC.
Since July, Tata Motors’ Jaguar Land Rover, Daimler AG’s Mercedes-Benz and BMW AG are among at least seven foreign manufacturers that have announced price cuts following the NDRC investigation. The news came after the NRDC found evidence of price manipulation by Mercedes-Benz in maintenance services and auto parts this week.
Toyota Motor Corp says that it would cut prices of auto parts for its luxury Lexus models in China, following similar moves by its German rivals, in response to the heightened regulatory scrutiny over anti-trust issues.
Prices on about 15000 parts will be reduced by an average 26% from next month, according to a statement posted on the Lexus website in China. “In response to the NDRC’s concerns over monopoly practices in the industry, Lexus China will cut prices of spare parts in China starting from September 1,” it says.
State media have reported that more than 1000 companies in the country’s auto sector, both domestic and foreign, are currently involved in anti-monopoly probes by the government.
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