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Yazaki gets $46 million penalty for cartel conduct

Tuesday 22 May 2018


Penalties 

Once again, the Australian Competition Consumer Commission (ACCC) has made good on its announced enforcement priorities when it comes to anti-competitive behaviour, this time handing down the highest penalty ever imposed for a company caught engaging in cartel conduct.

Japanese company, Yazaki Corporation, has been ordered by the Federal Court to pay penalties of $46 million for price fixing and running a car parts cartel. This comes after an appeal made by the competition regulator and lodged in May of last year, following an initial fine of $9.5 million.

The raised penalties also take into considerations
recommendations made by the Organisation for Economic Cooperation and Development (OECD) about how Australia can strengthen its penalties to act as more of a deterrent.

“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,” said ACCC Chairman, Rod Sims. “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.”

Sims added the regulator will continue to seek penalties that will help to deter anti-competitive conduct.