Mercedes-Benz found guilty for violating anti-monopoly laws in China

Article by Andrew Christian, on August 18, 2014

Last week we reported about a $40 million fine imposed by China against Audi for violating its anti-monopoly laws. Today, another German carmaker comes into focus and this time we are talking about Mercedes-Benz, which was also found guilty of price fixing. There are no details regarding some penalties but we do expect to see a fine similar to that received by Audi.

In the last weeks we also reported about German carmakers such as Audi, BMW and Mercedes-Benz, which slashed prices on spare parts. According to Zhou Gao a.k.a. the chief of antitrust investigation at the Jiangsu bureau, Mercedes-Benz used its leading position in order to control the prices of its spare parts but also of repair and maintenance services.

According to a report from the China Automotive Maintenance and Repair Trade Associations it is cheaper to buy a new car than replace all the spare parts in a Mercedes-Benc C-Class. It appears that the spare parts cost 12 times more than buying a new vehicle.

Still, Mercedes-Benz isn’t the only manufacturer accused for monopoly practices as Chrysler is also investigated. Other multinational companies such as Mead Johnson Nutrition and Danone were also slapped by the anti-monopoly law in China and the country is also investigating Microsoft and U.S. chipmaker Qualcomm. [source: automotive news - sub. required]

Topics: mercedes-benz, china

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