Daye Announces to Inquire AL-KO

China-based PV module manufacturer Daye Solar has announced that it will launch an investigation into leading German PV mounting system supplier AL-KO to determine whether AL-KO has violated relevant Chinese laws and regulations.

Daye Alleges AL-KO of Anti-Competitive Conduct

Daye Solar alleges that AL-KO has engaged in anti-competitive conduct in the Chinese PV mounting system market, including:

• Price Fixing: AL-KO allegedly colluded with other PV mounting system suppliers to fix prices, artificially inflating the cost of mounting systems in China.
• Market Dominance: AL-KO’s alleged dominant position in the market has allowed it to stifle competition and prevent new entrants from gaining market share.
• Exclusionary Practices: AL-KO allegedly engaged in exclusionary practices, such as exclusive distribution agreements and bundling of products, to prevent competitors from accessing the market.

Daye Seeks Legal Recourse

Daye Solar has stated that it will pursue all available legal options to protect its interests and the interests of Chinese PV industry stakeholders. The company has already filed a complaint with the China National Intellectual Property Administration (CNIPA) and plans to file additional lawsuits in Chinese courts.

Industry Reacts to Daye’s Announcement

The PV industry has reacted to Daye Solar’s announcement with mixed reactions. Some industry experts support Daye’s decision to investigate AL-KO, arguing that anti-competitive practices can harm the industry’s development. Others are concerned that the investigation could damage the reputation of the PV industry in China and deter foreign investment.

Key Findings from Daye’s Investigation

Daye Solar’s investigation is ongoing. However, the company has released some preliminary findings, including:

• AL-KO’s market share in China has increased significantly in recent years, from 15% in 2018 to over 30% in 2022.
• AL-KO’s prices for PV mounting systems are significantly higher in China than in other countries.
• AL-KO has entered into exclusive distribution agreements with several major PV module manufacturers in China.
• AL-KO has bundled its PV mounting systems with other products, such as solar panels and inverters, to make it more difficult for competitors to compete.

Daye’s Recommendations

Based on its preliminary findings, Daye Solar is recommending that the CNIPA and Chinese courts take the following actions:

• Investigate AL-KO’s alleged anti-competitive conduct thoroughly.
• Impose penalties on AL-KO if it is found to have violated Chinese laws and regulations.
• Implement measures to promote competition in the Chinese PV mounting system market.

Implications for the PV Industry

The outcome of Daye Solar’s investigation and the subsequent legal proceedings could have significant implications for the PV industry in China and beyond:

• Reduced Prices: If AL-KO is found to have engaged in anti-competitive conduct, it could lead to lower prices for PV mounting systems in China, which would benefit both PV module manufacturers and end users.
• Increased Competition: An investigation could also encourage other PV mounting system suppliers to enter the Chinese market, increasing competition and leading to innovation.
• Improved Reputation: A thorough investigation and fair resolution could enhance the reputation of the Chinese PV industry and attract more foreign investment.

Conclusion

Daye Solar’s decision to investigate AL-KO is a significant development in the Chinese PV industry. The outcome of the investigation could have a major impact on the market for PV mounting systems and the overall development of the industry.

Additional Information

Table 1: AL-KO’s Market Share in China (2018-2022)

Table 2: AL-KO’s Prices for PV Mounting Systems (2022)

Table 3: AL-KO’s Exclusive Distribution Agreements

Table 4: AL-KO’s Product Bundling