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China’s latest price fixing target

Monday, August 18, 2014 - 02:08

German luxury carmaker Mercedes-Benz has been found guilty of manipulating prices for after-sales services in China, according to the official Xinhua news agency. But as Sonia Legg reports no penalties have been imposed yet.

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The Mercedes-Benz dealership in Shanghai was operating as normal despite the latest price fixing scandal involving European fan. According to China's official news agency of the luxury German automaker and by Diana has been found guilty of manipulating prices of up to sales services. It says replacing all the -- -- expressing cost much in China can cost twelve times more than buying a new vehicle. The problems offices in Shanghai and another dealership were rated earlier this month. Bill Russo is managing director at the advisory them -- thing he says it's all part of a drive to help the Chinese consume -- We're seeing is first of all of communication to a market that. Over the years. Foreign branded products have been priced very high. And informing the Chinese consumers. Perhaps station taken another look at the prices in the -- for. A more competitive price from the field and demand a more competitive person fractures. Thomas says it's assisting the authorities and there was no mention of any penalties. But antitrust regulators can impose fines of up to 10% to at the previous is China revenues. The investigation is one of several involving the auto industry diamond Volkswagen's Audi and BMW have -- slashed the prime suspect -- in recent weeks. Many of this month authorities that they punish Audi and -- it's -- the monopoly practices. -- China's best selling premium car brand will reportedly be find more than forty million dollars. By enforcing these laws that are actually making the foreign branded products. More affordable. So the market. Which in the end is gonna make it harder for Chinese -- carmakers to compete against them. So the unintended consequences -- giving consumers but the price which are also forcing the local carmakers to compete with foreign branded products. That are more affordable. Feel so industry is -- the anyone falling found -- China's 2008 anti competition -- milk how to make this an electronics fans. Are among an array of companies which have been in the spotlight.

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China’s latest price fixing target

Monday, August 18, 2014 - 02:08