Spain: €6 million fine for Nissan price-fixing

Spain's competition authority, la Comisión Nacional de los Mercados y la Competencia (CNMC), has fined Nissan's local distributor, a number of its dealers and two consultancy firms €6.03 million after an investigation into the exchange of commercially sensitive information leading to agreements over discounts and conditions of supply. The consultancy firms monitored the cartel-members' compliance and reviewed the dealers' monthly sales figures.

According to the story on the Law 360 website, the distributor will pay €1.9 million and two of the dealers over €1 million each. I had hoped to provide a link to material on the CNMC's website (www.cnmc.es) but I am unable to find anything relevant - I can order a coffee in Spanish but drilling down into the competition authority's website is another matter altogether. I will ask a friend for help.

Spain: CNMC penalises price-fixing cartel (with more still to come)

La CNMC multa con 41,1 millones de euros a 95 concesionarios de automóviles Audi, Volkswagen y Seat, dos empresas consultoras y dos asociaciones del sector, is the title of the press release announcing the imposition of substantial penalties following investigations that Motor Law reported in Spetember 2013. This forms part of a wider investigation into the car market, involving six sets of proceedings against distributors and one against a number of manufacturers.

In the present decision, the CNMC identified seven different geographical cartels involving the three marques. Their illegal conduct included  fixing maximum rebates and commercial conditions, and exchanging sensitive information. There were also enforcement mechanisms, imposing sanctions on dealers who failed to stick to the cartel rules: two firms of consultants who were involved in imposing sanctions and collecting 'fines' were also penalised.

SEAT and 11 dealers benefited from the authority's leniency programme and were not penalised. Four companies were investigated but not found to have broken the law.

The companies involved have two months in which to file an appeal.

'via Blog this'

Mercedes fined 350 million yuan ($56 million) for price fixing in China

The National Development and Reform Commission in Jiangsu province in eastern China (close to Shanghai) fined Daimler's Mercedes-Benz 350 million yuan ($56 million) for a pricing monopoly there. The fine is the highest imposed yet on carmakers probed by the government last year for antitrust violations, and this is the last case arising from those investigations. Some Mercedes dealers were reportedly fined 7.7 million yuan in addition.
The NDRC said the carmaker had set minimum sales prices for E-class and S-class cars, and for some spare parts, and given warnings to dealers who did not comply. It had violated anti-monopoly law, damaging fair market competition and harming consumer rights. The regulator said in an official statement: "The investigation found Mercedes-Benz and its dealers in Jiangsu came to and carried out monopoly agreements to cap the lowest sales prices of E-class, S-class models and certain spare parts." Had infringements in other provinces also been found, the fine could have been much greater.
As we have reported in the past, China has been clamping down on the sector, punishing foreign automakers for price fixing for the first time last year when it fined the Chinese venture of Volkswagen and a sales unit of Fiat Chrysler Automobiles' Chrysler division a combined $46 million. The regulator has denied that it is discriminating against foreign companies.
Last year, China found 12 Japanese parts-makers guilty of price fixing and imposed fines totalling 1.24 billion yuan, the biggest antitrust penalties in the China since new rules came into effect seven years ago.
The story is on the Automotive News Europe and Financial Times websites.

Spain: competition authority launches proceedings concerning price-fixing in car market

Following an investigation in July (see this press release), the CNC, Spain's national competition authority, has initiated proceedings against several car manufacturers and their dealers for price-fixing and exchanging commercially sensitive information, and against some others for exchanging information only. Auditors and data processing companies also seem to be in the frame. The press release (in Spanish) is here, and there is also a report from Reuters.

Running the press release through Google Translate reveals little more information, other than a list of vehicle manufacturers and dealers who are under investigation, and that the authorities have 18 months in which to complete the exercise.

OFT issues statement of objections in CV competition case

Price co-ordination, market sharing and exchange of sensitive commercial information are alleged in a statement of objections issued today by the Office of Fair Trading against Mercedes Benz and five of its dealers. Press release here.

More antitrust trouble ahead for parts makers in US

According to Automotive News, investigations in the US into price-fixing in the car parts market have already led to a $200 million fine for Furukawa Electric Co and gaol for three of its executives. That case involved wire harnesses: it is expected that the investigation will look into the supply of other parts, too. Even bigger fines, and more gaol sentences, are likely.
As in the UK system, co-operation with the authorities can secure immunity from prosecution or from civil penalties, and parts suppliers seem to be engaged in an unseemly race to assist the Department of Justice. Wiring harness manufacturers are handing over information about price-fixing in other sectors.
In Europe, the Commission has carried out dawn raids on TRW Automotive and Lear Corp.
In the US, fines for price-fixing are up to $100 million or twice the profit made on the products - and in this case the DoJ is assuming a profit margin of 10 per cent.