The European Commission has imposed fines totalling A$1.3 billion on nine of the world’s largest energy companies for operating a cartel in the billion dollar paraffin wax market. Between 1992 and 2005 companies including Sasol, ExxonMobil, Repsol, ENI, RWE and Total colluded to fix prices and share the market. Shell received full immunity for alerting the European Commission of the cartel.
The European Commission has fined two importers of bananas a total of A$116 million for operating a price fixing cartel. A third importer and cartel participant, Chiquita, received full immunity for blowing the whistle on the cartel and for providing information to assist with investigations. The European Commission found that the importers set reference prices on a weekly basis for bananas imported into Austria, Belgium, Denmark, Finland, Germany, Luxembourg, the Netherlands and Sweden between 2000 and 2002.
The United States Federal Trade Commission has commenced an investigation into whether manufacturers of musical instruments and audio equipment (including famous companies such as Fender, Yamaha and Gibson) illegally blocked retailers from discounting their goods. The investigation is expected to gain a lot of interest as debate increases in the US retailing industry over whether manufacturers can force retailers to charge customers a minimum advertised price. The Leegin case in 2007 ruled it wasn’t illegal, per se, for manufacturers and retailers to agree to minimum prices. Meanwhile, the FTC has announced that it will host a series of public workshops between January and March 2009 on resale price maintenance.
The United Kingdom Competition Commission, together with the Office of Fair Trading and the Department for Business, Enterprise and Regulatory Reform, has commissioned a study of some past CC and OFT merger decisions. The independent review team will assess the analysis and decision making in around eight merger cases. The results of the review are expected to assist the CC and OFT in preparing the new joint substantive merger guidelines due for completion in 2009.
The European Commission has released a new merger remedies guideline in which it highlights its strong preference for structural remedies and access remedies as a means of removing any competition concerns arising from mergers. The new guidelines make clear the European Commission will accept divestitures only when a suitable purchaser can be identified. The role for behavioural remedies whereby companies provide commitments on pricing for example is played down in the new guidelines.
United States/New Zealand spam email network shut down
The US Federal Trade Commission, working with the New Zealand Commerce Commission, has sued one of the world's largest spamming operations. The lawsuits, filed in the US and NZ, describe an international spamming operation run out of NZ, Australia and the US that sold phony male-enhancement pills, knock-off prescription drugs, sex toys and replica watches that have clogged inboxes for years. The US court has issued a temporary injunction prohibiting defendants from spamming and making false product claims, and has frozen the defendants’ assets to preserve them for consumer redress pending trial. Four people, including an Australian resident, have been named in the lawsuits.
International Consumer Protection Enforcement Network meeting
Consumer protection agencies from over 39 countries met in Paris in October to participate in the International Consumer Protection Enforcement Network (ICPEN) meeting. Issues such as global enforcement coordination and cooperation and consumer education were among the topics discussed.
ICPEN is a membership organization consisting of the trade practices law enforcement authorities. The mandate of ICPEN is to share information about cross-border commercial activities that may affect consumer interests, and to encourage international cooperation among law enforcement agencies.
