BRUSSELS, Oct 5: The European Commission fined French carmaker Peugeot Citroen on Wednesday nearly 50 million euros for violating EU competition rules by preventing Dutch dealers from selling cut-price cars abroad.

The commission, which polices competition issues in the European Union, said that Peugeot’s strategy from 1997 to 2003 of keeping dealers from selling cars to consumers in other member states constituted a “a very serious violation” of EU competition law.

Those regulations enshrine consumers’ rights to buy where they want in the EU at the best price they can find.

The pre-tax price of cars in the Netherlands is among the cheapest in Europe, which has encouraged some bargain hunting consumers from abroad to shop in the country.

In response to the commission’s action, the company said in a statement: “Peugeot will examine the decision when it is notified before deciding whether to appeal.”

The commission said that part of the remuneration of Peugeot’s Dutch dealers was made dependent on the final destination of the vehicle, which discriminated against foreign consumers, the commission said. —AFP