Japanese auto parts makers slapped largest anti-trust fines in China
20 Aug 2014
China has imposed the largest anti-trust fines in recent history, against a dozen Japanese companies, according to the country's top regulator.
Ten auto parts and ball-bearing manufacturers were fined a total of $1.235 billion for monopolistic price-fixing in the Chinese markets, which made it the largest anti-monopoly fine since implementation by China of its antitrust laws in 2008, state-run broadcaster CCTV said.
Eight of the Japanese entities, auto parts suppliers, were fined a combined total of 832 million yuan, with Hitachi included in the initial list. Others include Sumitomo Corp, Denso Corp, Mitsubishi Electric Corp.
The National Development and Reform Commission (NDRC) said, the manufacturers unfairly set prices for auto parts from 2000 to 2010. The parts were sold to companies like Honda Motor Co, Toyota Motor Corp, Nissan Motor Co, Suzuki Motor Corp, and Ford Motor Co according to the NDRC.
It added, however that Hitachi and ball bearing maker Nachi Fujikoshi would be exempted from any financial penalties, as they had voluntarily admitted to the offenses and gave important evidence against the other companies.
The fines on 10 other companies ranged from 290 million yuan to 29.76 million yuan, the NDRC said.
The eight Japanese auto parts suppliers were found to have often met bilaterally or multilaterally in Japan from January 2000 to February 2010, and negotiated prices and implemented agreements over quoted prices concerning orders from the Chinese market.
The NDRC added, that the four bearing makers were also found to have jointly held meetings in Japan and Shanghai from 2000 to June 2011 to discuss the timing and scope of price hikes for bearing products in the Chinese market. The companies then hiked their price according to their negotiations.
It added the moves by the companies had violated the Chinese anti-monopoly law, adversely affecting market competition and which hurt the rights and interests of downstream manufacturers and consumers.
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