Mercedes-Benz has found itself in some very serious legal trouble in China. According to Chinese media the German luxury car maker has received a very heavy $56 million fine after being found guilty of price fixing. Reports have indicated that Mercedes-Benz is being accused of forcing dealers to establish minimum sales prices for spare parts and certain models. The reports have also said that the company also issued warnings to the dealers that didn’t comply.
The pricing bureau in China’s eastern Jiangsu province has stated that Mercedes-Benz has violated the anti-monopoly law, thus damaging the fair market competition and harming consumer rights. Certain Mercedes-Benz dealers have been fined up to $1.3 million. Investigations by local authorities claim that Mercedes-Benz dealerships had “monopoly agreements to cap the lowest sales prices of E-class, S-class models and certain spare parts.” The parent company Daimler issued a statement saying “Mercedes-Benz China accepts the decision and takes its responsibilities under the competition law very seriously. We have taken all appropriate steps to ensure to fully comply with the law.”