The Australian Competition and Consumer Commission has instituted civil proceedings in the Federal Court against Koyo Australia Pty Ltd (Koyo) for alleged cartel conduct relating to the supply of ball and roller bearings for use in motor vehicles and industrial applications.
The ACCC alleges that in 2008 and 2009, Koyo and at least two of its competitors made and gave effect to two separate cartel arrangements for an increase to the price of bearings to their aftermarket customers.
Ball and roller bearings are widely used to allow a movable connection between mechanical items. They are an essential component in a wide range of products such as motor vehicles, mining conveyors and farm machinery.
“The ACCC’s focus on cartel conduct sends a strong message. It is crucial for the proper functioning of business in Australia that the ACCC continues to tackle cartel conduct with the full force of the law,” ACCC Commissioner Sarah Court said.
“Cartel conduct such as price fixing not only cheats consumers and other businesses but is damaging to the Australian economy.”
The ACCC is seeking pecuniary penalties, declarations and injunctions.
Koyo has cooperated fully with the ACCC’s investigation into the alleged cartel and has admitted to the conduct.
The ACCC’s action follows enforcement action against Japanese bearing manufacturers by the Japan Fair Trade Commission.
A directions hearing has been set down for 14 August 2013 at 9.30 am before Justice Edmonds in the Federal Court, Sydney.
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