The State Development and Reform Commission instructed the Jilin Provincial Price Bureau to impose a total fine of 114.39 million yuan on three cement enterprises, namely, Jilin Yatai Group Cement Sales Co., Ltd., North Cement Co., Ltd. and Jidong Cement Jilin Co., Ltd., for price monopoly. Among them, Yatai Company was fined 60.04 million yuan, Northern Company was fined 40.97 million yuan, and Jidong Company was fined 13.38 million yuan.
Recently, the relevant penalty procedures have been fulfilled, and the relevant information is announced as follows. Since March
2013, the Price Supervision and Inspection and Anti-monopoly Bureau of the National Development and Reform Commission has organized anti-monopoly investigations on price monopoly in some local cement industries. After investigation, on April 14, 2011, the relevant personnel of North Company, Yatai Company and Jidong Company held a meeting in Yatai Company to discuss the regional cement ( clinker ) price and implementation policy, and formed the Resolution of Regional Price Setting Meeting of Key Cement Enterprises in Jilin Province. The agreed ex-factory price of clinker for export is 300 yuan/ton, and the ex-factory price of clinker entering Liaoning region is not less than 300 yuan/ton. The meeting also formed a resolution on cement prices in Changchun, Songyuan and Panshi regions . The three companies agreed to adjust all cement prices to the latest execution price from 0:00 on April 16, 2011, and formulated the Implementation Table of Cement Prices in Changchun, Songyuan and Panshi Regions. The specific execution prices of bagged and bulk cement of PC32.5, PO42.5 and PII52.5 sold by the three companies are listed, and it is clear that the price of each variety of cement in the table is the lowest ex-factory execution price of the three companies, and the listing price and external quotation are increased by at least 10-20 yuan/ton according to the situation. The meeting also tentatively decided that on April 25, 2011, the three companies will determine the implementation price and policy of cement in Jilin region in May in Jidong Company. In the cement price adjustment execution notice issued by Yatai Company to Changchun regional departments and Mingcheng Sales Department on April 15, 2011, it was clearly stated that a price execution agreement had been reached with North Company and Jidong Company, and a regional cement price agreement execution table was attached, which listed the sales execution prices of different types of cement of North Company and Jidong Company.
In addition, on May 11, 2011, the relevant personnel of Northern Company and Yatai Company held a meeting in Tonghua Cement Co., Ltd. of Yatai Group to agree on the price of cement in Tonghua and Baishan areas. The Summary of the Second Price Setting Meeting of Tonghua and Baishan Areas of Jilin Cement Industry in 2011 has been formed, and the cement price execution tables of Northern Company and Yatai Company in Tonghua and Baishan Areas have been formulated, and the specific execution prices of bagged and bulk cement sales of PC32.5, PO42.5 and PII52.5 have been agreed. It is also clarified that the price of cement in the region will be determined at this meeting from May 12, 2011. The meeting also suggested that on May 26, 2011, the operation of the regional market should be discussed and the market price for the next stage should be determined.
Yatai Company, Northern Company and Jidong Company agreed on the sales price of cement through frequent meetings, and implemented the price agreed in the resolution of the meeting in their operation, reached and implemented the price monopoly agreement, which violated the provisions of China's Anti-monopoly Law, excluded and restricted market competition, and controlled the sales price of cement. It damages the interests of downstream industries and consumers.
Considering the situation of excess cement production capacity in China, the above three companies reached and implemented price monopoly agreements for a short time, and the damage to market competition was limited to a certain regional scope. Accordingly, Yatai Company and Jidong Company, which did not actively cooperate with the investigation, were fined 2% of their annual sales in 2012. RMB 60.04 million and RMB 13.38 million respectively; a fine of 1% of the annual sales in 2012 was imposed on Northern Company, which was able to cooperate with the investigation and actively rectify, amounting to RMB 40.97 million.
Next, the National Development and Reform Commission will instruct the relevant provincial (municipal) anti-monopoly law enforcement agencies to punish the verified price monopoly of cement enterprises according to law, maintain fair and orderly market competition, and protect the legitimate rights and interests of consumers.
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