Chinese Regulator Fines Ford JV for Monopoly Pricing
Tang Shihua
/SOURCE : yicai
Chinese Regulator Fines Ford JV for Monopoly Pricing

(Yicai  Global) June 5 -- China's market regulator has fined one of Ford Motor's major China joint ventures CNY162.8 million (USD23.6 million)  for violating the nation's anti-monopoly law.

Chang'an Ford, a 50:50 joint venture of Ford and China's Chongqing Chang'an Automobile, was sanctioned because it restricts its dealer's pricing  rights in China's southwestern megacity of Chongqing, and therefore  plied a vertical monopoly.

The share price of the Chinese partner tanked after the State Administration of Market Regulation handed down its decision. 

The stock [SHE:000625] traded down 3.53 percent at CNY6.55 at the lunch break. 

Editor: Ben Armour

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Keywords: Monetary Punishment , Joint Venture , Ford , Monopoly Law , SAMR