Competition authorities to fine car dealers for price fixing

MADRID -- The National Commission for Markets and Competition (CNMC, Comisión Nacional de los Mercados y la Competencia) has recently advised car dealers (Audi, Seat, Volkswagen, Skoda, Nissan, Toyota, Land Rover, Hyundai and Opel, so far) that it intends to fine them for alleged anti-competition practices in the retail market. An investigation that began in June 2013 revealed that they had all agreed not to discount their vehicles for more than 4%, in what the report says was a 'sort of non-aggression pact' that is against competition legislation. The organization considers it proven that the manufacturers' distribution network took part in an organised system whereby concurrent prices were avoided within

their own dealerships and subsidiaries. Naturally, the most impacted dealerships were in the most inhabited cities and towns, particularly Madrid and Barcelona, where sales were higher and competition more aggressive. The original investigation started when Seat, Audi and VW (all of the VW group, but does not involve the manufacturing companies -- see below)) asked for exemption for a similar fine, which was denied at the time, but opened up to reveal anti-competition price-rigging in other brands as well.

Reports say that the car-dealering community is seriously concerned about the eventual fines, given that sales are well down lately, despite government efforst to help in the shape of Plan PIVE, already in its third edition. The Plan offers up to €2,000 for the purchase of a new, fuel-efficient purchase. In addition a second investigation has opened up, this one involving the car manufacters, including Renault, Toyota, Nissan, Chrysler, General Motors, Fiat, Ford, Honda, Kia, Peugeot Citröen, Volkswagen and two consultants, Urban Science y Snap-on. However, this investigation is taking a little longer, it is probable that the final reports will be available sometime next month. 

(Original source: Cinco Días)