In the third legal action taken against the credit card industry, the New Zealand Commerce Commission has commenced an investigation into credit card companies increasing credit charges on late bill payments 'unreasonably'. Credit card fees were being checked with reference to the Credit Contracts and Consumer Finance Act. The NZCC is focusing upon increases in credit charges on late bill payments to consumers rising from NZ$10 to NZ$49 over a period of seven years, which it deems to be 'unreasonable' under the legislation.
European Union
Introduction of specialist competition court rejected
The European Union Committee of the House of Lords (United Kingdom) has rejected the introduction of a specialist court, claiming that it would face the same litigation complexities and delays as the Court of First Instance. The rationale for a specialist competition chamber within the CFI was based upon the lengthy appeals process currently taking place (on average 32 months). Delays are caused by three factors: time consuming translation of legal materials into French (the official working language of the CFI), large caseloads and judicial expertise that is not specialised enough in competition law. Instead, the committee recommended improvements to the CFI’s procedures, including reducing its workload by transferring cases to a judicial panel. The committee also suggested reducing appeals against fines in cartel cases and using European Commission settlement processes to resolve disputes.
Global
Competition regulators uncover marine hose cartel
The United States Department of Justice (US DoJ) announced the arrest of eight executives from the United Kingdom, France, Italy and Japan for conspiring to rig bids, fix prices and allocate markets for the sale of marine hose used to transport oil between tankers, storage facilities and buoys. Agents from the US Defense Criminal Investigative Service have executed search warrants around the US to expand the investigation. The European Union announced that surprise inspections of several marine hose producers in France, Italy and UK had uncovered breaches of s. 81 of the European Community Treaty. Currently competition authorities in the EU, the UK and the US are working together to unravel remaining elements of this cartel.
United States of America
Australian Wheat Board faces new class action
A fourth-class action lawsuit has been lodged against the Australian Wheat Board by US wheat farmers who allege the AWB violated US antitrust laws. The lawsuit, by which the farmers are seeking millions of dollars of damages, alleges that AWB is guilty of fraud and racketeering under the Racketeering Influenced Corrupt Organizations Act. In early 2007 a lawsuit was commenced against the AWB alleging it had paid bribes and kickbacks to Saddam Hussein’s regime, costing US wheatgrowers millions of dollars in lost sales. As a consequence, the AWB may lose its 67-year monopoly over wheat exports and be replaced by a new grower-owned company that will manage the nation's wheat pool.
Global
Siemens investigated by regulators worldwide
Investigations into alleged breaches of competition law by Germany’s Siemens are being undertaken by competition regulators in Norway, France, Japan, Poland and New Zealand. Siemens, a manufacturer of products ranging from mobile phone network components to trains, is being investigated across Europe for a number of alleged competition law breaches. The New Zealand Competition Commission has alleged that Siemens was part of a cartel controlling the supply of gas-insulated switchgear to New Zealand’s power industry.
