The Australian Competition and Consumer Commission has appealed the recent decision of the Federal Court imposing a penalty of $9.5 million against Japanese company Yazaki Corporation (Yazaki) for collusive conduct.

“The ACCC submitted to the Court that Yazaki should be ordered to pay a penalty of between $42 million and $55 million, to reflect both the size of Yazaki’s operations and the very serious nature of its collusive conduct,” ACCC Chairman Rod Sims said.

“Yazaki’s conduct was described by Justice Besanko as deliberate, sophisticated and devious. The ACCC will argue that the penalty not only needs to better reflect this, but it should also serve as a strong deterrent for all companies by demonstrating the serious consequences of breaking Australia’s competition laws.”

“If penalties don’t match the serious nature of the conduct, we run the risk that big businesses will simply view the penalties for breaking Australia’s competition laws as no more than a cost of doing business,” Mr Sims said.

The ACCC has also appealed an earlier finding by Justice Besanko that Yazaki’s Australian subsidiary, Australian Arrow Pty Ltd, did not give effect to the collusive arrangements made by Yazaki in 2003 and 2008. 

The appeal will be heard on a date to be fixed by the Full Federal Court.

Background

On 24 November 2015, the Federal Court found that, in 2003 and 2008, Yazaki made and gave effect to arrangements with a competitor, which included the coordination of quotes to Toyota for the supply of wire harnesses used in the manufacture of the Toyota Camry.  

On 9 May 2017, Justice Besanko ordered Yazaki to pay penalties totalling $9.5 million. 

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