China’s National Development and Reform Commission (NDRC) is investigating more than 1,000 companies involved in the country’s automotive industry to see whether they are engaging in monopoly tactics.

Both domestic and foreign businesses are being examined, according to the state-run China Daily newspaper. The guilty companies can have their “illegal gains” confiscated, the NDRC said, and they can be fined up to 10% of their sales revenues from the previous year.

Earlier this month, Audi announced that it is to “accept punishment” from the Chinese authorities after their investigation found that one of its dealer networks had “violated national anti-monopoly laws,” according to the German luxury-car maker’s Chinese subsidiary.

It added that it had “closely co-operated with the investigation”.

The EU Chamber of Commerce has said that, while some Chinese firms had been probed by the NDRC, European businesses are “increasingly considering the question of whether foreign companies are being targeted disproportionately.

In some of the industries under investigation, domestic companies have not been targeted for similar violations.

Furthermore, in some cases involving joint ventures, it has only been the foreign partner that has been named as being a party to the investigations.”

Meanwhile, a number of European automotive companies have announced price cuts in response to the inquiries.