SHANGHAI: China has fined 10 Japanese auto parts firms more than US$200 million (RM634 million) in total for price fixing, authorities said yesterday, reportedly the biggest-ever such penalties, in the latest step of the country’s anti-monopoly drive.
Beijing has over the past year launched a wide-ranging crackdown on alleged malpractice by foreign firms across diverse sectors, including pharmaceuticals, baby formula and technology, raising fears overseas companies are being targeted.
The auto parts companies were found to have implemented monopoly pricing agreements for more than 10 years, the National Development and Reform Commission (NDRC) regulator said in a statement.
It fined them a total of 1.24 billion yuan (RM637.17 million), in what state broadcaster CCTV said was the biggest fine China had imposed since its anti-monopoly law took effect in 2008.
“The companies... unlawfully affected prices of auto parts, finished vehicles and bearings in China and harmed the interests of downstream manufacturers and consumers,” the NDRC statement said.
Sumitomo Electric was fined the most, 290.4 million yuan, of the seven car parts firms penalised for fixing auto parts
prices between January 2000 and Februa-
ry 2010, according to the statement, the
others being Denso, Aisan, Mitsubishi
Electric, Mitsuba, Yazaki and Furukawa Electric.
NSK, JTEKT and NTN were fined for price collusion over bearings between 2000 and June 2011, the NDRC added, with NSK ordered to pay 174.9 million yuan.
Two other roller bearing companies, Hitachi Auto Parts and Nachi, were found culpable but exempted from the penalties for taking the initiative to inform authorities and providing evidence on the monopoly agreements.
The NDRC, one of several Chinese government bodies that investigates monopoly actions, said in early this month it was probing auto firms including Audi and Chrysler as well as the 12 Japanese companies for possible violations.
It is the latest in a series of inquiries in various fields, which have raised investor concerns about the business climate in China.
State media have reported that more than 1,000 companies in the country’s auto sector, both domestic and foreign, are currently involved in anti-monopoly probes by the government.
Five of the Japanese auto companies — Mitsubishi, Denso, Sumitomo, NSK and JTEKT — issued statements confirming the penalties and pledging compliance with Chinese law and regulations.
Mitsubishi Electric said it “takes this
matter very seriously” and “will comply with the order”. Denso said it was its policy “to comply with all applicable antimonopoly laws”.
Both NSK and JTEKT said they took the situation with “utmost seriousness” while Sumitomo said its “highest priority” was to comply with competition laws. AFP