Chinese antitrust officials investigate some foreign companies

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Now it’s about car makers Audi and Chrysler and also Fiat SpA’s Chrysler in Shanghai and Volkswagen ‘s Audi in Hubei to be accused for monopolistic behavior. Some Japanese auto-parts makers are included too on the investigation list. Many of the car makers are already responding by cutting prices. Based on various European models and input from U.S. law, the Chinese anti-monopoly law contains also some unique Chinese considerations linked to the specific of the Chinese economy.

On the first article of the law is specified that it “is enacted for the purpose of preventing and restraining monopolistic conducts, protecting fair competition in the market, enhancing economic efficiency, safeguarding the interests of consumers and social public interest, promoting the healthy development of the socialist market economy.” As the law stipulates, for violations, the Anti-monopoly Commission has the power to fine companies between one and 10 percent of total annual turnover plus the confiscation of any illegal gains. Many of the companies China is targeting (such Microsoft or Qualcomm) have faced antitrust scrutiny elsewhere.

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