US-based Eastman Chemical was fined 24 million yuan (US$ 3.6 million) by Chinese market regulators for abusing its dominance in the market for a type of alcohol used in latex paints, according to an official statement.
In 2013 to 2015, Eastman held a high market share in China for a type of alcohol that clients heavily depended on, it said.
But the company has “forced” clients to sign exclusive agreement which limited their choice of products and prevented other firms from entering the market. Such practices weakened market competition, the regulator said.
The investigation formally began in August of 2017 by the Shanghai market supervision authority, with the authorization of the State Administration for Industry and Commerce.
As Eastman Chemical violated the clause over the abuse of market dominance, the Shanghai market supervision authority issued a fine of 24.38 million yuan for the violation.
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