The Spanish competition regulator, the National Competition Commission (CNC), has imposed a fine of AUD$13.7 million on integrated oil companies Repsol, Cepsa and BP for fixing prices at their fuel stations across Spain. The companies are alleged to have indirectly fixed the price charged for petrol from petrol stations that should operate independently. The CNC has also recently released a report on ‘distortions of competition’ in the fuel sector, which analyses the principal competition problems and proposes recommendations to correct them.
The United Kingdom's Office of Fair Trading has announced it will conduct a market study into the impact on consumers from potentially misleading advertising and pricing of goods and services, particularly relating to the internet. The study may look at the use of personal information in advertising where information from a consumer's online activity is used to target the internet advertising the consumer receives. The OFT is consulting with interested individuals, businesses and other organisations for their views on the scope of the study, which is scheduled to begin in late 2009.
The Prime Minister of New Zealand, John Key, has stated that New Zealand should consider imposing jail terms on executives found guilty of operating price-fixing cartels. Mr Key also stated that criminalising cartel behaviour was a legitimate issue to consider because it is one area where the New Zealand Commerce Commission and the Australian Competition and Consumer Commission now differ in their operation. These harmonisation and other issues were discussed during the Australia–New Zealand Leadership Forum held in August 2009.
Department of Justice to scrutinise agriculture sector
The United States Department of Justice has confirmed that the agriculture sector will be one of its main antitrust enforcement priorities. The DoJ will examine the level of competition in several agribusiness sectors, including the marketing of genetically modified seed, dairy processing and meatpacking.
New Federal Trade Commission rule prohibits petrol market manipulation
The Federal Trade Commission has issued a final rule expanding its regulatory power over oil market participants. The new rule gives the FTC broad powers to prosecute manipulation of petroleum markets, with the ability to set fines of up to AUD$1.2 million per violation a day on companies or individuals. The rule will come into effect on 4 November 2009.
FTC action against misleading green marketing claims
Under a proposed settlement with the FTC, Dyna-E International, a retailer of rayon towels, will be barred from making false claims that mislead consumers into thinking that its products are 'biodegradable'. This action is part of a broad effort by the FTC to ensure that environmental marketing is truthful and based on solid evidence. This is the third biodegradable claims case resolved by the FTC this year. The settlement is open for public comment for 30 days before a final agreement is made.
