EU: Antitrust regulators to fine Japanese car part makers

European Union antitrust regulators are set to punish Japanese auto parts makers for allegedly fixing prices of starter motors and accelerator modules, two people familiar with the matter said on Monday.

The companies in the alleged cartel are world No. 2 parts maker Denso , Mitsubishi Electric Corp and a Hitachi Ltd unit , the people said.

The European Commission action will mark the first of several automobile-related cases scheduled for 2016 and is the latest in a series of penalties levied by competition watchdogs in the United States, Europe and Asia against a long-time business model in the industry.

That model essentially sees parts makers keep prices relatively high for new components they supply to car manufacturers, and then charge even more for the same parts supplied as replacements to dealerships and repair shops.

The Commission briefed national competition authorities on the case earlier on Monday, the people told Reuters.

It was not clear if there was a whistleblower among the three Japanese companies. Firms which report a cartel to the European Commission are not sanctioned.

The Commission can fine companies up to 10 percent of their global turnover for breaching antitrust rules.

European Union antitrust regulators are set to punish Japanese auto parts makers for allegedly fixing prices of starter motors and accelerator modules, two people familiar with the matter said on Monday.

The companies in the alleged cartel are world No. 2 parts maker Denso , Mitsubishi Electric Corp and a Hitachi Ltd unit , the people said.

The European Commission action will mark the first of several automobile-related cases scheduled for 2016 and is the latest in a series of penalties levied by competition watchdogs in the United States, Europe and Asia against a long-time business model in the industry.

That model essentially sees parts makers keep prices relatively high for new components they supply to car manufacturers, and then charge even more for the same parts supplied as replacements to dealerships and repair shops.

The Commission briefed national competition authorities on the case earlier on Monday, the people told Reuters.

It was not clear if there was a whistleblower among the three Japanese companies. Firms which report a cartel to the European Commission are not sanctioned.

The Commission can fine companies up to 10 percent of their global turnover for breaching antitrust rules.

Full content: Channel News Asia

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