In a move that reflects the increased scrutiny China is placing on corporations, China has fined six dairy companies a total of $109 million in response to those companies attempting to fix minimum resale prices of their products thereby limiting competition. The companies being fined are Mead Johnson Nutrition Co., Danone, Abbott Laboratories, Royal FrieslandCampina NV, Fonterra Cooperative Group Ltd., and Biostime International Holdings Ltd. Within days of the announcement that the government was investigating price fixing within the industry, producers cut prices by as much as 20% in some cases and announced that they would amend existing resale contracts to align with Chinese law.
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