South Korea's Fair Trade Commission (FTC) has said that it has found two Japanese automotive component suppliers guilty of fixing component prices, according to a report by Reuters. The South Korean antitrust regulator has imposed a fine of KRW510 million (USD414,119) on Denso and of KRW630 million on Mitsubishi Electric for artificially fixing the prices of engine starter motors supplied to General Motors (GM). In a statement, FTC said that in 2008 Denso and Mitsubishi Electric colluded on bid prices for the engine starter motors used in GM's Spark, Cruze and Orlando vehicles made in South Korea.
Significance: According to the media report, this is the seventh price-fixing case involving global auto component makers probed by South Korean regulators. In March 2015, the regulator imposed a fine of KRW523 million on Denso Corporation and a KRW916 million fine on NGK Spark Plug Company for artificially keeping the prices of exhaust gas temperature sensors at decided level. Meanwhile, Denso has applied for a leniency programme that enables a company to escape sanction if it reports the illegal conduct on its own, it said. Furthermore, authorities in Europe also alleged that similar practices were taking place.
