Following Australian Competition and Consumer Commission court action, the Federal Court last March imposed penalties of $26 million on Roche Vitamins Australia Pty Ltd ($15 million), BASF Australia Ltd ($7.5 million), and Aventis Animal Nutrition Pty Ltd ($3.5 million).
This was in relation to price fixing and market sharing conduct in Australia involving animal vitamins A and E and pre-mix containing these vitamins.
Regarding other vitamins, the ACCC has been involved for some time in investigations about whether there has been cartel conduct affecting Australia covered by the Trade Practices Act.
Investigations, in particular, into alleged agreements in relation to Vitamin C for human use, have progressed considerably, and court processes are in train in relation to three foreign corporations and certain individuals. The ACCC will make public announcements regarding these investigations in due course. Investigations are also proceeding in relation to other vitamins.
"There has been a sharp rise recently in the amount of international cartel activity detected, especially in this and some nearby industries", ACCC Chairman, Professor Allan Fels, said today.
"The ACCC is conducting its own investigations and cooperating with other agencies. The ACCC has formed cooperation agreements with the USA, for example."
Globalisation brings benefits, but can also, if unchecked, impose costs on consumers. Competition policy has an important role to play in helping bring benefits, not costs, to consumers.
"When businesses in different countries collude, and when offshore agreements damage countries, cooperation between competition regulators is needed to protect consumers and to protect business interests as well," Professor Fels said.