ACCC discontinues proceedings against global vitamin C cartel

The Australian Competition and Consumer Commission has discontinued its proceedings in the Federal Court against foreign producers of vitamin C used for human consumption.

The ACCC instituted proceedings in the matter of F Hoffmann-La Roche Ltd & Others (V875 of 2001) alleging that various foreign companies in the Asia Pacific region and foreign executives entered into and gave effect to an arrangement the purpose and effect of which was to fix the global price of human vitamin C.

The proceedings arose from alleged agreements that were made and implemented overseas between January 1991 and October 1995, and which were part of a broader global vitamins cartel which ceased in about 1999.

The ACCC alleged that an integral part of the arrangements was the allocation of global market shares amongst the foreign companies for the distribution of human vitamin C. None of the Australian subsidiaries of these companies were joined to the action.

The proceedings were discontinued after further investigations indicated that the cartel arrangements made by the foreign companies were probably not given effect to in Australia.