The China Automobile Dealers Association (CADA), on behalf of Mercedes-Benz car dealers, recently issued a written notice to Mercedes-Benz Beijing regarding the latter’s allegedly illegal “double limit” policy for car dealers — minimum prices and restrictions on sales into other dealers` territories. CADA has submitted evidence to the State Administration for Industry and Commerce for thorough investigation.

Automobile manufacturers’ control of both the upstream and downstream markets for their products has been subject to repeated criticism. The complaint concerning Beijing Benz’s Policy shows the tension between a widespread industry practice and China’s Anti-Monopoly Law (AML). The market is eagerly waiting to see how the regulators confront these restrictive policies in the automobile industry.