BEIJING: The first draft of an antitrust guideline for the automobile sector is expected to be completed at the end of this month, according to the National Development and Reform Commission, state-run media reported.
In addition to policy guidelines on monopoly violations, the draft, to be reviewed by the Anti-Monopoly Commission under the State Council by June next year, would also cover price-fixing violations by car makers selling products online, Xinhua News Agency said Monday.
It said with the rise of online retailers such as Alibaba and JD.com, consumers are looking for better deals online and cars are no exception. This has caused controversy as it is unclear what is classed as fair play.
The news agency said concerns abound over the possibility that websites would facilitate price fixing, and, thus, impede market fairness.
It reported that one of General Motors' brands intended to promote car sales during the upcoming Nov 11 shopping festival through an e-commerce site.
However, the company is hesitant as it is not clear whether the discounted online price will violate regulations.
The new guideline will look into online promotional pricing activities, helping to define what is and is not covered by the Anti-Monopoly Law, Xinhua quoted Su Hua, an associate researcher at the Chinese Academy of Social Sciences and member of the drafting team, as saying.
The news agency said China's antitrust law enforcement has been actively restricting price fixing in the automobile industry this year.
Dongfeng Nissan was fined 123.3 million yuan last month on price fixing charges, while Mercedes-Benz was fined 350 million yuan in April on similar issues.
It reported that in total, two billion yuan of monopoly-related fines were issued in the auto sector this year.
