Australia: ACCC’s first criminal price fixing case ends in guilty plea

A Japanese shipping company has plead guilty in the first criminal price fixing prosecution by the Australian Competition and Consumer Commission (ACCC). Some questions yet remain unanswered, but this first criminal prosecution will mark a new trend in competition law enforcement in Australia.

Australia has had a civil penalty regime since 1974, with which individuals have paid fines of up to a $1 million. But since the criminalization of “hard core” competition law conduct seven years ago, this is the first criminal prosecution. “Hard core” conduct in Australia includes competitor agreements to fix prices, limit capacity or output, share markets, and rig bids.

The ACCC must still decide whether more usually to pursue hard core cases with civil or criminal enforcement. Although the ACCC likely will prefer the criminal track when and where possible, a number of complications may continue to drive matters back towards civil enforcement.

Full Content: Mondaq

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