One of the world’s largest luxury carmakers has been found guilty of price fixing and intimidating dealerships for unfair profits.The company is found guilty of strong arming dealerships to manipulate minimum sales prices for certain car models and spare parts, for higher profits. Those dealers who refused to comply were warned and forced to do so.
The pricing bureau of China’s eastern Jiangsu province accused the Daimler-owned company and raised the case of violation of anti-monopoly law. Mercedes Benz is considered to have damaged fair market competition and taken consumer rights for granted. Aside from the German automaker, dealers are also fined, to the combined sum of 7.7 million yuan ($1.24 million / Rs. 7.85 crores) for carrying out the unlawful practice.
The Jiangsu pricing regulatory department investigated the whole case and found Mercedes-Benz dealerships to have capped the lowest sales prices of models including S-Class and E-Class, which sell in very good numbers.
Daimler AG has issued a confession, “Mercedes Benz China accepts the decision and takes its responsibilities under the competition law very seriously.” The company added, “we have taken all appropriate steps to ensure to fully comply with the law.”
Via – Auto News