Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Bearings maker to pay penalty to resolve Australian price fixing charges, (Oct 21, 2013)
Organizations Mentioned:Koyo Australia Pty Ltd.
By Tobias J. Gillett, J.D., LL.M.
Koyo Australia Pty Ltd., a manufacturer and seller of ball and roller bearings, must pay (Aust.) $2 million in penalties under orders by consent made by the Australian Federal Court in an action brought by the Australian Competition and Consumer Commission, the ACCC announced on October 18.
In its decision to approve the penalty agreed upon by Koyo and the ACCC, the court found that Koyo had conspired with two of its competitors to increase the price of ball and roller bearings to their aftermarket customers in 2008 and 2009. The bearings that were subject to the cartel are essential components of products such as motor vehicles, mining conveyors, household electrical items, and farm machinery.
In addition to the $2 million penalties, the court made orders restraining Koyo from engaging in similar cartel conduct for three years, and requiring it to implement a competition and consumer law compliance training program. In approving the $2 million penalty, the court found that “[t]he discount for Koyo’s co-operation and Koyo’s acknowledgement of liability should be meaningful so that it can be seen that, were it not for its admissions now and co-operation, the Court would impose a significantly increased penalty if liability was established following a contested trial.”
“Detecting, stopping and deterring domestic and international cartels is a priority for the ACCC,” said ACCC Chairman Rod Sims. “Cartels not only cheat consumers and other businesses, they also restrict healthy economic growth. It is crucial for the proper functioning of business in Australia that the ACCC continues to tackle cartel conduct with the full force of law.”
Koyo response. In a press release, Koyo acknowledged the penalty it agreed to pay, and asserted that it had taken steps to prevent similar conduct from occurring again.
“As Koyo Australia treats this matter with the utmost seriousness, it has taken the appropriate measures to prevent any recurrence and it has increased its efforts to ensure compliance with all applicable laws and regulations,” Koyo Managing Director Hiroyuki Fujioka wrote. “Koyo Australia sincerely regrets the concern this matter has generated.”
Companies: Koyo Australia Pty Ltd.
News: Antitrust