Mercedes-Benz fined $56.5 million by Chinese regulator for price fixing
Jiangsu's pricing bureau penalises Mercedes-Benz and its dealers for imposing minimum prices on E-Class, S-Class and spare parts, escalating China's crackdown on foreign automakers.
A local pricing regulator in Jiangsu province has fined Mercedes-Benz 350 million yuan (about $56.5 million) after finding the German manufacturer guilty of illegal price fixing with its dealers. The penalty, announced this week, follows an investigation into the company’s sales practices for E-Class and S-Class models as well as certain spare parts.
According to the Jiangsu pricing bureau, Mercedes-Benz required its dealers to set minimum sales prices for certain vehicles and parts, threatening those who did not comply. The regulator said these actions breached China’s anti-monopoly law and undermined fair competition, with direct consequences for consumers and the market.
Details of the price fixing investigation
The investigation centred on Mercedes-Benz’s conduct in Jiangsu, where the company and its dealer network were found to have reached and executed monopoly agreements. These agreements capped the lowest sales prices for the E-Class, S-Class and selected spare parts. The regulator’s statement made clear that Mercedes-Benz not only set these minimum prices but also enforced them through warnings to dealers.
This penalty is one of the largest imposed on a foreign automaker in China’s ongoing campaign against anti-competitive practices. The previous year saw fines on Volkswagen’s Chinese joint venture and a Fiat Chrysler sales unit, totalling $46 million. Several brands also cut prices on cars and parts to avoid similar penalties.
Impact on Mercedes-Benz and the market
A spokesperson for Daimler, Mercedes-Benz’s parent company, acknowledged the investigation and the penalties. The Jiangsu regulator stated the company’s actions had harmed both market competition and consumer rights. The case signals continued scrutiny of foreign automakers’ pricing strategies in China, with the authorities showing little tolerance for arrangements that restrict competition.
The fine follows a period of intensified enforcement in China’s automotive sector, with regulators targeting both manufacturers and dealers. The move is expected to keep pressure on automakers to revise their pricing policies and comply with local competition laws.
