China targets Mercedes in antitrust investigation
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China's investigations into foreign companies spread to the auto sector on Tuesday, with German giant Mercedes-Benz saying it is helping authorities after reports that anti-monopoly investigators raided its Shanghai office.
Beijing Mercedes-Benz Sales Service Co confirmed that it is involved in an antitrust investigation launched by the National Development and Reform Commission.
"We're actively assisting the investigation," the company said without elaborating.
Jiemian, a new-media platform of Shanghai United Media Group, reported on Tuesday that nine investigators from the commission made a surprise visit to a Mercedes-Benz premises in Shanghai on Monday, questioned employees and checked computers.
The commission, one of three government antitrust agencies, is responsible for regulating pricing. It did not comment on the report on Tuesday.
Insiders said the Mercedes investigation may target the company's controls on regulating the lowest price for both completed models and parts to dealers.
If a company manipulates prices by controlling production, distribution and sales of a product, it violates the Anti-Monopoly Law.
Mercedes-Benz is the first company in the automotive industry confirmed to be under a government antitrust investigation after the Ministry of Commerce warned of illegal business actions in the sector several months ago.
