China fines major foreign shipping lines $65M on price-fixing charges

BEIJING -- China fined seven foreign shipping companies that carry vehicles for automakers a total of $65 million on price-fixing charges Monday in its latest effort to end anti-competitive behaviour in the auto industry.

See Full Article

Investigators found Europe's Wallenius Wilhelmsen, South Korea's EUKOR, Japan's Mitsui O.S.K. Lines and other shippers improperly co-ordinated bids and routes to keep prices high, the Cabinet's planning agency said. An eighth shipper, Japan's NYK, was found to have colluded but was spared a fine.

Regulators have investigated or penalized automakers, dairies and technology suppliers under China's 2008 anti-monopoly law in an effort to force down prices Chinese consumers complain are too high.

Business groups say the secretive and abrupt way investigations are conducted is alienating foreign companies. Regulators deny foreign companies are treated unfairly.

The latest penalties target "roll-on, roll-off" shippers that move cars, trucks and construction equipment aboard specialized vessels that carry hundreds and sometimes thousands of vehicles.

Representatives of the companies met over a period of more than four years to share information and make deals to avoid competition, the National Development and Reform Commission said. It said the collusion covered routes linking China with Europe, North America and Latin America, and involved multiple auto brands.

The biggest penalty of 284 million yuan ($45 million) was imposed on EUKOR Car Carriers Inc., according to the National Development and Reform Commission. Wallenius Wilhelmsen Logistics, a Swedish-Norwegian company, was fined 45 million yuan ($7.1 million).

Mitsui O.S.K. Lines Ltd. was fined 38 million yuan ($6 million). Other companies penalized were Japan's K Line and Eastern Car Liner Ltd. and Chile's CSAV and CCNI.

NYK was found to have colluded but was spared a fine, the NDRC said. The company said in a separate statement that was because it co-operated with investigators.

Previously, Chinese regulators fined global auto brands and parts suppliers for enforcing minimum sticker prices and using control over supplies of spares to charge excessively high prices.

In the biggest anti-monopoly penalty to date, the U.S. chipmaker Qualcomm Inc. was fined 6 billion yuan ($975 million) in February on charges it abused its dominance in wireless technology to charge "unfairly high" licensing fees.



Advertisements

Latest Economic News

  • Jimmy Choo is on the market

    Economic CBC News
    A Jimmy Choo shoe is seen in a shop in downtown Rome in March 2016 file photo. (Max Rossi/Reuters) British luxury retailer Jimmy Choo is seeking offers for the company as part of a review of its strategic options to maximize shareholder value, it said on Monday. Source
  • Asian stocks mixed as investors examine French election outcome

    Economic CTV News
    TOKYO -- Asian stocks were mixed Monday as investors weighed the results of the first round of the French presidential election. KEEPING SCORE: Japan's benchmark Nikkei 225 rose 1.3 per cent in morning trading to 18,870.24. Source
  • Oregon teens sells $1 million in custom socks

    Economic CTV News
    SHERWOOD, Ore. -- Seventeen-year-old Oregon resident Brennan Agranoff spends his days going to school, doing chores and running his custom-design sock business. It's no simple hobby: Agranoff is the founder and CEO of HoopSwagg, and he has already sold $1 million in custom socks. Source
  • Oregon teen sells $1 million in custom socks

    Economic CTV News
    SHERWOOD, Ore. -- Seventeen-year-old Oregon resident Brennan Agranoff spends his days going to school, doing chores and running his custom-design sock business. It's no simple hobby: Agranoff is the founder and CEO of HoopSwagg, and he has already sold $1 million in custom socks. Source
  • The sad saga of North Korea's ATMs

    Economic CTV News
    PYONGYANG, North Korea -- No modern airport terminal is complete without an ATM, and Pyongyang's now has two. But they don't work -- because of new Chinese sanctions, according to bank officials -- and it's not clear when they will. Source
  • Real estate reality check: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC's Marketplace. Get this in your inbox every Friday. Sign up here. House cooling Time for some cold water on that hot southern Ontario real estate market? Here's how the province is proposing to rein in the madness. Source
  • Birthing April the Giraffe becomes cash cow for tiny U.S. zoo

    Economic CTV News
    April the giraffe has become a cash cow for a tiny zoo in rural upstate New York, thanks to a livestream of her pregnancy and birth that has enthralled viewers around the world. Owners of the Animal Adventure Park won't say exactly how much they've pulled in from all the April-related ventures, but marketing experts who specialize in viral internet campaigns conservatively estimate the haul in the hundreds of thousands of dollars. Source
  • Despite special regulations, edible entrepreneurs hope to take bite of Canada's marijuana market

    Economic CBC News
    Amid all the uncertainty about the federal government's ?plans to legalize marijuana by mid-2018, a culinary mystery stands out: How will marijuana-infused food products, commonly called "edibles," fit into the legal regime? Ottawa has signalled that regulations governing the sales of edibles won't be ready by the time recreational marijuana becomes legal. Source
  • 'Vital for tenants' or 'textbook' bad policy: How rent control works in NYC

    Economic CBC News
    Before Ontario's provincial government announced its plans to expand rent control, some economists were already sounding alarm bells about imposing the controversial policy. In response to some Toronto tenants who say their rents have doubled, the government on Thursday unveiled its Fair Housing Plan. Source
  • What we can learn from New York's rent control regime

    Economic CBC News
    Before Ontario's provincial government announced its plans to expand rent control, some economists were already sounding alarm bells about imposing the controversial policy. In response to some Toronto tenants who say their rents have doubled, the government on Thursday unveiled its Fair Housing Plan. Source