China fines Audi and Chrysler for price-fixing

The government of China levied fines against local arms of the world’s largest car manufacturers Audi and Chrysler. Local regulators investigating the activity of the dealers found out that the companies were artificially inflating prices. The court ruled that Germany's Audi, which is part of the Volkswagen Group, will have to pay about $40 million in fines. As for Chrysler owned by Italy's Fiat, it will pay far less - $5 million. Imposing the fines, the Chinese government said that the two companies had violated the law by fixing the prices of vehicles. Consumers voiced their displeasure with automakers and unreasonably high prices for cars of domestic and foreign production. It would seem that it is good that the state takes control of the pricing on the world's largest car market. However, there is an opposite opinion also. Independent observers say that such restrictions and regulators’ interference “have raised investor concerns about the business climate in China”. Many people believe these antitrust investigations are a political order. It is noteworthy that a number of companies in the country are currently involved in anti-monopoly probes by the government. As a result, the Chinese authorities have imposed more than $100 million in fines on six international milk powder manufacturers, accusing them of price-fixing.