China launches separate anti-trust probes into Chrysler, Audi

In a significant move, China today announced that it has launched two separate anti-trust probes into multinational car makers Chrysler and Audi whom it accused of pursuing monopolistic practices.
Li Pumin, spokesman of the National Development and Reform Commission (NDRC), told reporters that the Chrysler investigation was launched by the Shanghai Municipal Development and Reform Commission and the Audi probe was conducted by the Hubei Province Price Bureau.
The two investigations are drawing to an end, he said, without specifying details of the punishment, state-run Xinhua news agency reported.
Li also confirmed that the Jiangsu Province Price Bureau launched an anti-trust investigation last week into dealers of German auto giant Mercedes-Benz in five Jiangsu cities.

On Monday, inspectors from the Jiangsu Province Price Bureau and the Shanghai Municipal Development and Reform Commission made visits to Mercedes-Benz's Shanghai premises, he said.
Inspectors are still collecting evidence and probing whether Mercedes-Benz has used monopolistic tactics, Li said.

The NDRC is one of three government anti-trust agencies in China. It is in-charge of the examination and regulation of price-related monopolistic practices.
According to Li, the NDRC has recently finished investigations into 12 Japanese companies and found monopolistic behaviors in auto parts and bearing prices.
Stating that the commission will punish them in accordance with the law, Li said the commission launched anti-monopoly probes into the auto industry at the end of 2011 with the aim to safeguard competition in the market and protect customers' legitimate rights.

China has an anti-monopoly legal system containing an Anti-Monopoly Law, Regulations on Anti-Price Monopoly and Procedural Regulations on Administrative Enforcement of Anti-Price Monopoly.
The cases were part of action launched by China aon a number multinationals firms including Mircosoft.
A host of multi-national firms including the Microsoft, the mainstay of the country's IT boom, have faced anti-monopoly probes with raids on their offices.