Dongfeng Nissan fined over 100 million yuan for violating Anti-monopoly Law in China

Following Audi, Chrysler and Mercedes Benz, Dongfeng Nissan became another joint-venture fined by Chinese authorities for violating of the Anti-monopoly Law.

Guangdong provincial Development and Reform Commission announced in September 10th on its website that the Dongfeng Nissan received an administrative penalties of 123.3 million yuan and its cooperation 17 dealers in Guangzhou area were fined 19.12 million yuan.

An array of investigation revealed that during 2012 July to 2014, Dongfeng Nissan manipulated dealership quotation price and final sale price of on-line and phone sales channels and business halls in Guangdong Province through issuing business regulations and price management and strict assessing system. In 2013 to dealers in Guangzhou got punishment for violating the price control measures.

Dongfeng Nissan reached monopoly agreement with dealers in Guangdong province in implementing fixed price on car resealing, which violated of the 14th regulation of Anti-monopoly Law as they excluded and restricted competition in the relevant market doing detriment to the interests of consumers.

The final price of the car was supposed to be determined by the dealer according to market supply and demand, but because the vehicle factory is in a strong position, in order to protect its own price system, it often makes dealer to sell the lowest price of the vehicles.

According to the forty-ninth and forty-sixth article of Anti-monopoly Law, Guangdong provincial Development and Reform Commission decided to fine the joint-venture a sum of money that amounts to the annual 3% of sales in the relevant market of a year earlier, which is 123.3 million yuan, and 19.12 million yuan on dealers of 2%~4% of the sales in related market in last year.