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]

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Topics: china, audi



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