Record fine for foreign dairy companies in China

A record amount of 670 million yuan (24.6 billion HUF) fines were imposed on six foreign producers of baby milk powder in China – the Chinese National Development and Reform Commission announced to the local media on Wednesday.

The companies that were found guilty in price fixing are Biostime, Mead Johnson, Dumex, Abbot, Fonterra and Friesland.

The Biostime was fined for 163 million yuan (nearly 6 billion HUF), ie the 6 percent of its 2012 revenue because the company “severely violated the anti-monopoly law, and did not take steps to change this situation.” Mead Johnson’s fine is 204 million yuan (7.5 billion HUF), 4 percent of its revenue last year, also because, the company did not actively cooperate with the investigation.  (MTI, Trebitsch Péter)