China slaps Mercedes-Benz with $57 million fine for price-fixing

BEIJING, April 23 (UPI) -- China has fined German luxury carmaker Mercedes-Benz nearly $57 million for price-fixing schemes tied to its E-Class and S-Class models.

The penalty comes as Chinese regulators are expanding a nationwide crackdown on foreign corporations for price manipulation, reported the BBC.

A regulator in China's Jiangsu province said in a statement that Mercedes-Benz and its dealers in the region carried out monopoly agreements to cap the lowest sales prices of E-Class, S-Class models and certain spare parts.

Mercedes-Benz has accepted the decision and said it "takes its responsibilities under competition law very seriously."

In 2014, the carmaker was connected to price-fixing in after-sales services, according to Xinhua news agency.

The New York Times reported China has targeted several foreign companies for violating anti-monopoly laws. A record $975 million fine was charged to Qualcomm, the U.S. chip maker in February.

In 2014, Chinese regulators fined local ventures of Volkswagen and Fiat Chrysler a total of $46 million for price-fixing.

In the Mercedes-Benz case, officials claimed the carmaker issued verbal pricing instructions to maintain minimum prices for select sedans, or face the risk of "reduced policy support" from the company, according to China's National Development and Reform Commission. Mercedes-Benz also was accused of playing a "dominant and promoting role" in creating and enforcing the price agreements.

In September, Chinese Premier Li Keqiang told foreign business executives Beijing will "continue to improve and perfect the business environment."