Chinese regulators concerned over monopoly practices at Mercedes-Benz image

The German luxury automaker is not currently investigated, but according to one of its senior officials in the country, the Chinese price watchdog is concerned that Mercedes’ activities could be part of a monopoly scheme.

The top executive in China said the price regulator has expressed its concerns about certain activities of the automaker that could lead to monopoly in the country, a practice that seems to be alleged at other carmakers as well. Nicholas Speeks, China sales head at Daimler AG’s Mercedes-Benz, said that while the company is not officially investigated in any way, the automaker is now reducing prices for spare parts and service charges by 20%.

Last week, Bloomberg reported that China’s National Development and Reform Commission was reviewing practices at Daimler AG’s Mercedes-Benz and other foreign brands to find if they decided to artificially boost the prices of spare parts. The concerns expressed over the foreign automakers are an integral part of an ongoing investigation in the country’s overall auto parts market, as officials from the NDRC have been searching for evidence for some time to asses anti-competitive behavior.

Via Reuters