Chinese liquor giants fined for price fixing
Updated: 2013-02-23 14:43
(Xinhua)
|
|||||||||||
BEIJING -- Chinese top two liquor makers Kweichew Moutai and Wu Liangye were fined a total of 449 million yuan ($71.41 million) for price fixing, according to local price regulators.
The Guizhou-based Moutai and Sichuan-based Wu Liangye were ordered to pay 247 and 202 million yuan in fines, respectively, according to statements from local price regulators on Friday.
It marked the harshest fines since the implementation of China's antimonopoly laws in 2008.
The statements said that the companies had restricted the lowest prices on its liquor products for resale at their distributors, with whom they had made vertical monopoly agreements.
The punishments have shown that the government makes no exception for any company when handling antitrust cases, as the two fined businesses are both state-owned, said Wang Xiaoye, a professor at Graduate School of Chinese Academy of Social Sciences.
But the fines were relatively light, Wang said, citing that they only accounted for 1 percent of the total revenue the two companies recorded last year. The figure can reach as high as 10 percent according to Chinese antimonopoly laws.
The punishment added to the plight of the two liquor giants, as a recent government frugality campaign is expected to have a sizeable impact on sales of their products, which mainly target high-end consumers.
The penalties follow similar fines to Samsung, LG and four Taiwanese LED makers in January.
Related Stories
Moutai chairman warns of growth slowdown 2013-01-29 17:35
Moutai's 2012 net profit lower than expected 2013-01-25 16:24
Kweichow Moutai forecasts profit increase 2013-01-25 11:10
Moutai 'platinum series' landed in Jiuxian 2012-12-31 14:56
Kweichow Moutai to invest more for airport construction 2012-12-21 16:58
Today's Top News
Police continue manhunt for 2nd bombing suspect
H7N9 flu transmission studied
8% growth predicted for Q2
Nuke reactor gets foreign contract
First couple on Time's list of most influential
'Green' awareness levels drop in Beijing
Palace Museum spruces up
Trading channels 'need to broaden'
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Liaoning: China's oceangoing giant |
Poultry industry under pressure |
'Spring' in the air for NGOs? |
Boy set to drive Chinese golf |
Latest technology gets people talking |
Firms crave cyber connection |