AutoBeta(AutoBeta.net)06/05 Report--

China's market regulator said it would impose a fine of 162.8 million yuan ($23.55 million) on Ford Motor and Changan Ford, a joint venture with Changan Automobile Group, for violating the anti-monopoly law, according to domestic media reports.

China's State Administration of Market Supervision said on its website that since 2013, Changan Ford has limited the minimum resale price of downstream dealers in Chongqing by formulating a "price list", signing a "price self-discipline agreement" and limiting downstream dealers' lowest prices and network lowest quotations during the auto show. In violation of the provisions of the Anti-monopoly Law on prohibiting operators from reaching a monopoly agreement with the counterpart of the transaction to limit the minimum price of reselling goods to a third party.

The agency also said that in the course of the investigation, Changan Ford did not provide evidence that the relevant actions were in line with the exemption under Article 15 of the Anti-monopoly Law. The above behavior of Changan Ford deprives the downstream dealers of pricing autonomy, excludes and limits the competition within the brand, actually weakens the competition among brands, and harms the fair competition in the relevant markets and the legitimate interests of consumers. The fine imposed by the China Market Regulatory Administration on Changan Ford is equivalent to a fine of 4 per cent of sales in Chongqing in the previous year.

On the day after the ticket was issued, Changan Ford issued a media statement: Changan Ford fully respects and insists on implementing the penalty decision made by the relevant state departments on this antitrust investigation, and will further standardize its business activities. we will earnestly safeguard a free and fair market competition environment.

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