New Delhi, Aug 7 (KNN)  China has imposed fines amounting to as much as USD 108 million to six milk powder companies, owing to anti-competitive practices by the global baby formula makers.

“China has issued record fines of 670 million yuan (108 million U.S. dollars) to six baby formula companies on the mainland following an anti-trust probe, the country's top economic planner announced Wednesday,” said a Xinhua report.

The six companies named in the report are Biostime, Mead Johnson, Dumex, Abbott, Friesland and Fonterra, said the National Development and Reform Commission (NDRC).

While Biostime which violated the anti-monopoly law and failed to take corrective action was fined 163 million yuan, Mead Johnson which although did not actively cooperate with the investigation but did take self-rectification measures was fined 204 million yuan. 

As far as Dumex, Abbott, Friesland and Fonterra were concerned; each received a fine equal to 3 per cent of their 2012 revenue owing to the fact that the four companies cooperated in the probe and actively moved to correct their improper practices.

However, Wyeth, Beingmate and Meiji were exempt from punishment because they cooperated with investigation.

During the probe that began in March, NDRC noticed the milk powder companies set minimum resale prices for distributors.  The NDRC said in a statement the fines were for restricting competition, setting curbs on minimum prices for distributors and for using a variety of methods to disrupt market order.

In the world's second biggest economy foreign infant formula is much sought after, following a 2008 scandal in which six children died and thousands of others fell ill after drinking formula that contained the toxic industrial substance melamine.  The incident had badly bruised public trust.  (KNN/ES)