China Accused Mercedes-Benz for Violating Pricing Rules
Published By : 18 Aug 2014 | Published By : QYRESEARCH
China accused the renowned luxury car manufacturers - Mercedes-Benz for manipulating prices and violating the anti-monopoly prices in the after-sales services that took place across the country.
According to some leading reports in the industry, Mercedes was engaged in anti-competitive malpractices while doing business in Jiangsu province, China.
Jiangsu Province Price Bureaustarted an investigation on the company and exposed these malpracticesconducted by them right after it suspected illegitimate activities in July this year. The Bureau stretched to an extent of raiding the company’s dealerships based in the Jiangsu province, as well as in an office in the Shanghai province.
China’s bureaucratic investigation is in the effort to protect customer interests and cater fair competition in the overall market. The law targets monopolistic practices,and investigations are a part of China’s anti-monopolyactivity analyzingmore than a thousand domestic and foreign companies in the automobile sector.
CAAM (China Association of Automobile Manufacturers) conducted these investigations allegedly with the anti-monopoly policy in the effort to protect legal interests of Chinese customers and sweep clean suchscandals in the automobile sector.
This discussion also brought up a scandal case of 4 BMW dealersin China’s Hubei province. The local price regulator had earlier announced a penalty of(260,000 dollars)1.6 million yuan on finding out price alliance from this automobile brand.
NDRC (China\'s National Development and Reform Commission) also found similar monopolistic malpractices at Chrysler, Audi, and 12 Japanese car manufacturers.