Foreign, domestic companies equal before law

Anti-monopoly probes aimed at creating fair competition

Foreign and domestic companies are treated equally before the anti-monopoly law, a spokesman of the Ministry of Commerce (MOFCOM) said over the weekend, in response to the country's recent wave of antitrust probes into foreign companies.

"Probes into monopoly behavior are common international practices," Shen Danyang, a MOFCOM spokesman, said in a statement posted Saturday on the ministry's website.

"All companies in China, no matter whether they are domestic or foreign enterprises, must be punished, and bear legal responsibilities once they have violated Chinese laws," he noted.

The recent anti-monopoly investigations into several foreign companies in accordance with the anti-monopoly law aim to promote fair competition and protect consumer interests, according to Shen.

The remarks came after several anti-monopoly investigations into foreign automakers and Microsoft.

The National Development and Reform Commission (NDRC) said Wednesday that it will punish Volkswagen AG's Audi brand and Fiat SpA's Chrysler for their monopoly practices in China.

According to China's Anti-Monopoly Law, which took effect in 2008, the fines could be up to 10 percent of the two automakers' annual revenues in the country.

The NDRC also announced it had completed investigations into 12 Japanese auto enterprises which were suspected of price manipulation of automobile parts, and will take punitive measures against them later.

In response to the anti-monopoly investigations into foreign automakers, the China Association of Automobile Manufacturers said in a statement Friday that "the moves are expected to promote fairness, create a clean environment for the auto market, and protect the legal interests of consumers."

"The crackdown on monopoly behavior in the auto sector should have come earlier," Su Hui, deputy director of the auto market division at the China Automobile Dealers Association, said Sunday.

Su said some foreign auto enterprises have established monopoly positions in the Chinese auto market for around a decade, which "is too long."

Previously these multinational automakers had leverage over their auto dealers, which enabled them to monopolize auto prices, according to Su.

The State Administration for Industry and Commerce also launched anti-monopoly investigations into Microsoft China Co in July. No exact punishment has been announced so far.

"Generally the Chinese regulators are more lenient in taking punitive measures against the companies which violate the anti-monopoly law compared with the governments in Europe," Xue Kepeng, a professor at the China University of Political Science and Law, told the Global Times Sunday.

China has always welcomed multinational companies and has been devoted to promoting a fair market environment for all market players, Shen noted.