China fines eyeglass makers for price manipulation

Chinese authorities said on Thursday that seven eyeglass and contact lens manufacturers have been fined more than 19 million yuan ($3.1 million) for price manipulation.

The companies include the four major frame eyeglass makers of Essilor, Nikon, Zeiss and Hoya, as well as Bausch+Lomb, Johnson & Johnson, and Weicon, major providers of contact lenses, the National Development and Reform Commission said in a statement.

Authorities had started investigations of eyeglass makers in August last year. Findings showed that some manufacturers had exerted price control on distributors and retailers, which violates anti-monopoly laws.

Illegal practices include restrictive contracts with distributors. To control prices, the companies would take punitive measures -- including fines and interruptions to supplies -- against distributors and retailers if they failed to sell the products at the set prices or offered discounts. If retailers abided by the set prices, they got rebates from the manufacturers.

The seven companies control a majority of China's eyeglass and contact lens market, and the price controls have restricted distributors' rights to set their own prices, disturbing market order and competition, while damaging consumer rights.

The companies have stopped illegal practices, scrapped their advisory prices, and lowered some factory prices since the investigation, the statement said.