Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Australian competition commission alleges cartel conduct in ball and roller bearings industry, (Dec 16, 2013)

The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in federal court in Sydney against NSK Australia Pty Ltd for cartel conduct relating to the supply of ball and roller bearings for use in motor vehicles and industrial applications, according to a December 13 announcement. NSK has cooperated with the ACCC’s investigation into the alleged cartel and has admitted to the conduct.

The ACCC alleges that, in 2008 and 2009, NSK and at least two of its competitors formed two separate cartel arrangements, in which they exchanged information about proposed price increases for the purpose of maintaining or controlling the price of bearings to their aftermarket customers. The ACCC is seeking pecuniary penalties, injunctions, and a compliance program.

Ball and roller bearings are widely used to allow a movable connection between mechanical items. They are an essential component in a wide range of products such as motor vehicles, mining conveyors and farm machinery. It is estimated that the Australian bearings market is worth over $300 million.

“Stopping cartel conduct is an ACCC enforcement priority as it causes harm to both consumers and to the competitive process,” ACCC Chairman Rod Sims said.

The case was brought following broader co-operation between competition agencies in the United States, Europe and Canada, it was noted.

News: Antitrust