Appliance Makers Not Allowed to Monopolize or Collude On Prices, NDRC Says
Yicai Global
/SOURCE : Yicai
Appliance Makers Not Allowed to Monopolize or Collude On Prices, NDRC Says

(Yicai Global) Jan. 11 -- Home appliance companies are to be barred from creating horizontal monopolies or hiking prices through collusion following a recent spike in prices, the Chinese government said.

Home appliance makers are prohibited from colluding with each other to create horizontal or vertical monopolies, driving up prices by abusing their market dominance, dumping to exclude competition or committing price fraud by applying false or misleading pricing techniques, said the National Development and Reform Commission's head of the bureau of Price Supervision and Anti-Monopoly.

Many companies, especially television and air conditioner makers, have marked up their products since late December 2016. Whirlpool (China) Co. [SHA:600983] sent a price markup plan in a letter to merchants throughout China and Midea [SZ:000333] said its air conditioners will be marked up by CNY50-100 (USD7-14) and on Dec. 19, 2016, Gree [SZ:000651] raised prices by CNY50-100 while Chigo [HKE:0449] raised its prices by two percent.

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