China on Wednesday said it is fining Ford’s joint venture 162.8 million yuan ($23.56 million) for violating the country’s anti-monopoly law.

Changan Ford Automobile, the tie-up between China's Changan Automobile and U.S. carmaker Ford, had been restricting the low end of its dealers’ sales prices since 2013 in the southwestern city of Chongqing, where the firm’s headquarters is located, according to an announcement from the State Administration for Market Regulation (SAMR).

SAMR said the practice had jeopardized the dealers’ price-setting rights, and had thus caused a price monopoly. Some insiders said the case reflects the industry’s dilemma when purchasing willingness drops and sellers compete with each other with deals to attract buyers.

Under such circumstances, dealers may actually want carmakers to internally set low-end prices, to help prevent price wars, said one industry insider who wished to stay anonymous due to the sensitivity of the issue. However, the practice was bound to result in violation of the anti-monopoly law, the person said.

The fine is the equivalent to 4% of Changan Ford’s 2018 sales revenues in Chongqing.

Related: Shenzhen, Guangzhou to Ease Car Ownership Restrictions

Contact reporter Zhao Runhua (runhuazhao@caixin.com)