There have been a number of prosecutions and investigations into a marine hose cartel for price fixing, bid-rigging and allocating market share in marine hose products across jurisdictions. In December 2007 the United States Department of Justice charged three United Kingdom executives with participating in the cartel which operated between 1999 and 2007. Through a plea agreement the three executives were allowed to return to the United Kingdom to face criminal charges in their own jurisdiction. In the United Kingdom the Office of Fair Trading has filed the action in the courts—a first test using the criminal charges that came into force in 2003.
Europe
European Commission fines chloroprene rubber cartel A$408 million
The European Commission has fined five companies, operating between 1993 and 2002, a total of A$408 million for price fixing and market sharing in the chloroprene rubber market (used in products ranging from shoe soles to rubber adhesives). One company was given a penalty—inflated by 60 per cent—of A$216 million because the company had previously engaged in similar behaviour.
European Commission initiates new round of Microsoft investigations
The European Commission has commenced two new antitrust investigations into Microsoft activities. The first investigation relates to Microsoft’s alleged reluctance to provide interoperability information to competitors across a broad range of products (its Office suite, various server products and .NET Framework). The second case relates to Microsoft’s tying practices of its web browser, Internet Explorer, to its Windows operating system. Microsoft, while indicating that it will cooperate with the EC’s investigations, has responded to the second case by refusing to unbundle Internet Explorer from its operating system. Meanwhile in the US, antitrust oversight of Microsoft has been extended to November 2009.
European Commission revises European Union emissions trading system
The European Commission president has announced a ‘historic’ reform package overhauling the 2005 Europen Union emissions trading system. The new energy plan is designed to reduce the EU’s greenhouse gas emissions by 20 per cent at a cost of A$98 billion per annum until 2020. The revised scheme will extend emissions trading to include more industrial sectors in the years between 2013 and 2020 and the energy sector will lose all rights to free emission allocations. Wealthier nations will be required to significantly reduce their emissions while poorer nations will be allowed to increase emissions with each country being given a national target for renewable energy. The EU proposals will need to be approved by the European Parliament and it is anticipated that the reform package, in its final form, will not enter into force until the end of 2009.
United States
Federal Trade Commission clears A$3.7 billion Google/Double Click acquisition
The Federal Trade Commission announced it will not oppose Google’s proposed acquisition of Double Click following its eight-month investigation stating that the deal would not ‘substantially lessen competition’ in the online advertising market. The acquisition is still under assessment by the European Commission.
Qantas Airways agrees to pay A$69.3 million for role in airfreight cartel
Qantas Airways has signed a plea agreement with the United States Government, effectively avoiding criminal penalties, by agreeing to pay A$69.3 million in damages and offering full cooperation with ongoing federal investigations into an airfreight cartel for international shipping. Qantas is the third airline to pay criminal fines for involvement in the cartel, which spanned the United States, Canada, the European Union and Switzerland. According to the charges, Qantas conspired with other airline carriers to fix rates for cargo shipments to and from the United States and other international destinations, between January 2000 and February 2006. During that period Qantas earned more than A$600 million from its cargo flights. The airline will receive immunity from criminal prosecution under the terms of the plea agreement; however, similar leniency will not be awarded to the six former and current Qantas executives who allegedly played prominent roles in the cartel.
