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China fines baby formula firms $108 million for price-fixing: Xinhua 07 августа 2013, 11:30

China has fined six mostly foreign baby formula companies a total of $108 million for price-fixing.
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China fines baby formula firms $108 million for price-fixing: Xinhua China fines baby formula firms $108 million for price-fixing: Xinhua
China has fined six mostly foreign baby formula companies a total of $108 million for price-fixing, AFP reports citing the official Xinhua news agency. The firms fined were Mead Johnson and Abbott from the US, Dumex, a subsidiary of France's Danone, Friesland of the Netherlands, New Zealand giant Fonterra -- at the centre of a health scare this week -- and China's Biostime, Xinhua said, citing the National Development and Reform Commission (NDRC). In a corporate statement, Mead Johnson said it had been handed a penalty of 204 million yuan ($33 million). Biostime said in a filing to the Hong Kong stock exchange that it had been given a 163 million yuan fine. Fonterra, which has had to recall products in several countries this week over a botulism scare, was fined 4.5 million yuan, it said. It cooperated fully with Chinese authorities and accepted their decision, it said. "The investigation leaves us with a much clearer understanding of expectations around implementing pricing policies which is useful as we progress our future business plans," Fonterra's president for Greater China and India, Kelvin Wickham, said in a statement. He added that Fonterra's fine was "in the lowest range" of the penalties handed out. The NDRC, China's top economic planner, launched the investigation into high prices it said resulted from a monopoly-like situation, mostly targeting overseas firms. Several of them announced price cuts last month. Xinhua said that three companies -- Wyeth, which is owned by Swiss giant Nestle, Japan's Meiji, and Chinese firm Beingmate -- had been exempted from punishment in the inquiry. The NDRC said they provided important evidence and carried out active self-rectification, it added.

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