China’s ‘monopoly’ crackdown targets Audi, Chrysler

August 6, 2014
China has reportedly targeted Audi and Chrysler in an anti-monopoly crackdown aimed at foreign companies.

The National Development and Reform Commission has accused the companies of “anti-competitive behavior,” without referencing any specific practices, according to Reuters.

The antitrust regulator is believed to be focusing on pricing policies, which will likely result in accusations that the companies have been bilking Chinese consumers by inflating prices in the market.

Chinese buyers sometimes pay astonishingly high prices for many imported vehicles, particularly luxury brands, though the disparity is typically blamed on shipping costs, duties and other government fees.

Audi and Chrysler are not the only foreign companies under pressure by the NDRC, with similar investigations into Mercedes-Benz and at least a dozen Japanese parts suppliers. The agency has vowed to punish a long list of businesses, with potential fines of up to 10 percent of their past year’s revenue.

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