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Record $46m penalty for cartel collusion

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Record $46m penalty for cartel collusion

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The highest ever penalty handed out for breaching competition rules has been handed to a foreign company, with the $46 million bill a substantial increase on the original penalty after an appeal by the ACCC.

Japanese firm Yazaki Corporation had been found guilty in 2015 of anti-competitive cartel conduct in relation to the supply of wire harnesses used in the making of the Toyota Camry.

In May 2017, Yazaki was ordered to pay penalties worth $9.5 million. However the ACCC appealed this penalty, suggesting that a fine of between $42 million and $55 million was more appropriate “to reflect both the size of Yazaki’s operations and the very serious nature of its collusive conduct.”

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Yazaki also appealed the verdict and its conviction.

Yet this week the Full Federal Court sided with the ACCC, and increased the initial penalty almost five-fold to $46 million.

“The ACCC welcomes the $46 million in penalties ordered against Yazaki, which is the highest penalty amount ever imposed under the Competition and Consumer Act 2010,” ACCC Chairman Rod Sims said.

“We appealed the penalties imposed by the trial judge because we considered that the original penalties of $9.5 million were insufficient to adequately deter Yazaki or other businesses from engaging in cartel conduct in the future.”

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Mr Sims claimed that cartel conduct is destructive to healthy economic growth, in addition to the direct impacts it has on consumers and other businesses.

“For this reason, it is of considerable importance that penalties imposed by the Courts are large enough to act as a sufficient deterrent to prevent companies and their employees contravening Australia’s competition laws,” he said.

“The ACCC is continuing to seek penalties which are high enough to deter anti-competitive conduct, particularly by large national and multinational corporations.”

 

Adam Zuchetti

Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the editorial direction of the publication since the beginning of 2016. Before joining My Business, he worked on fellow Momentum Media titles The Adviser and Mortgage Business.

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Adam has written across both consumer and business titles, including for News Corp Australia and Domain.

You can email Adam at This email address is being protected from spambots. You need JavaScript enabled to view it.

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Record $46m penalty for cartel collusion
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