China to impose 30 million euros fine against Audi for violating anti-monopoly laws

Article by Christian A., on August 15, 2014

China will impose a CHY250-million fine (EUR30.4 million) against Audi for violating anti-monopoly laws, according to a report by the 21st Century Business Herald business daily, citing an unidentified yet authoritative source.

The business daily said the fine being imposed on Audi is calculated based on a percentage of its car sales in 2013 in Hubei. Under China’s anti-monopoly law, the National Development and Reform Commission (NDRC) can impose fines of between 1 percent and 10 percent of a company's revenues for the previous year.

The NDRC has been probing into the business practices of Audi's sales arm with dealers in Hubei. Audi has disclosed that its sales arm -- a joint venture between parent VW Group and FAW Group -- had violated "part" of China’s anti-monopoly laws, adding it would accept the penalty.

NDRC has been investigating into monopolistic behaviors of foreign companies in different industries, with an aim to bring them with its anti-monopoly law passed in 2008.

According to Automotive News, NDRC probed the auto sector in the country, following allegations from state media that global carmakers are selling their vehicles at a much higher rate in China than in countries.

Other global carmakers now under NDRC’s scrutiny for anti-competitive behavior include Mercedes-Benz and Chrysler. [source: automotive news - sub. required]

Topics: china, audi

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries