NSK and NTN, two bearing manufacturers from Japan, became the first Japanese auto part firms to be fined for their monopolistic practices in China. Tokyo-based NSK has been fined CNY174.92 million for violating the Anti-Monopoly Law of China by the National Development and Reform Commission (NDRC). The fine is the biggest that China has imposed on auto companies so far under the Anti-Monopoly law, which allows for a fine of between 1% and 10% of the offender’s total sales revenue in the previous year. NTN was ordered by the NDRC to pay CNY119.2 million for its monopoly practices. The NDRC has found 12 Japanese makers of auto parts and bearings guilty of monopolistic practices. 10 of them were fined a combined CNY1.24 billion. Hitachi and Nachi escaped financial punishment as they were the first to offer evidence of their illicit practices. Four BWM dealerships in Hubei province were fined a total of CNY1.62 million after being found guilty of price fraud. China’s increased scrutiny of foreign companies’ pricing strategy has forced Audi, Chrysler, BMW and Mercedes-Benz to cut prices for spare parts, after-sales services, or vehicles as a “proactive response” to the investigation. The probe has also been extended to the IT and telecom industries.

The European Commission plans no retaliation over China’s probe of carmakers which resulted in fines and demands for price cuts. Audi, Mercedes-Benz and BMW were among the first companies named in a series of investigations launched earlier this month into foreign carmakers that have since snagged Chrysler from the United States and Japanese luxury marques Lexus and Infiniti. The European Union Chamber of Commerce has slammed the anti-monopoly investigation in a strongly worded statement issued in Beijing. “Competition law should not be used as an administrative instrument to harm targeted companies or serve other aims, such as administratively forcing price reductions,” said the Chamber, which represents 1,800 member companies in China. The Chinese authorities say they are not unfairly targeting foreign companies in a bid to protect domestic producers. The National Development and Reform Commission (NDRC) says it is investigating possible antitrust violations across the entire car industry.