Cartels
Cartel conduct is strictly prohibited. It includes agreements, arrangements or understandings between competitors designed to fix, control or maintain prices; or restrict supply to particular people or groups of people, or rig tenders (including collective boycotts, bid rigging and market allocation).
The ACCC vigorously enforces the CCA’s cartel provisions, breach of which may lead to civil or criminal sanctions, including substantial fines and jail terms of up to 10 year. ‘Follow on’ damages actions are also available for private persons affected by the conduct, including via class actions.
The Commonwealth Director of Public Prosecutions can bring a criminal prosecution against corporations and management personnel knowingly involved in cartel conduct.
Many corporations and individuals have been prosecuted for cartel conduct as at June 2018. These include two shipping companies and an Australian rehabilitation and aged care company, as well as three banks and six of their executives. Most of these matters remain before the courts.
The maximum civil penalty for each individual breach of the CCA’s cartel provisions for a corporation is the greater of A$10 million, three times the gain from the unlawful conduct, or 10 per cent of the annual turnover in the relevant market. The maximum penalty for an individual is A$500,000.
The highest civil penalty for cartel conduct to date is A$46 million, which was imposed on Japanese company Yazaki in a civil case in May 2018. In August 2017, a A$25 million criminal fine was awarded against NYK, an international shipping line that admitted giving effect to cartel provisions in an arrangement or understanding with other shipping lines relating to the transportation of motor vehicles to Australia between 2009 and 2012.
Resale price maintenance – that is, setting the minimum price at which goods or services can be on-sold – is also strictly prohibited, although the ACCC has the power to authorise such conduct on efficiency or public benefit grounds.