This article was originally published on August 5, 2014 at 11:21 pm
- The National Development and Reform Commission (NDRC) and the State Administration for Commodity Prices are finalizing their investigations into Audi (ETR: NSU) and Chrysler and have almost confirmed monopolies, as reported by Chinanews.
- Chrysler announced a reduction in the price of its car fittings on August 5 in response to the investigation.
Why It Matters:
- The article suggests that the foreign auto makers violated Chinese anti-monopoly laws by setting a lowest price for cars and car fittings with dealers. Chinanews suggests the case is very similar to the monopoly investigation into China’s top liquor maker Kweichow Moutai (CH: 600519) and Wuliangye Yibin (CH: 000858) which was conducted in 2013.
- Chinanews suggests that the foreign car makers kept no records of the pricing policy, however, the regulators found enough evidence and expect to announce penalties against the two companies in the near future.
- Note that yesterday the NDRC commenced an investigation into Mercedes-Benz over an alleged monopoly.