The Federal Court has imposed penalties against a Japanese company, Yazaki Corporation (Yazaki), for engaging in collusive conduct with a competitor when supplying wire harnesses to Toyota Motor Corporation (Toyota) in Australia.
In 2015, the Court found that Yazaki and its competitor coordinated quotes to Toyota for the supply of wire harnesses used in the manufacture of the Toyota Camry in Australia.
In imposing penalties of $9.5 million, Justice Besanko stated that “Yazaki’s conduct bore upon substantial financial transactions between substantial corporations in Australia, one of which provided goods to members of the Australian public”.
Justice Besanko also noted the seriousness of Yazaki’s conduct, stating, “The conduct was deliberate, sophisticated and devious. It included the manipulation of the prices and the components of the prices so as to avoid arousing suspicion.”
Yazaki was also ordered to pay 85% of the ACCC’s costs.
“The ACCC had submitted that significantly higher penalties were appropriate in this case having regard to the seriousness of the conduct, together with Yazaki’s size and substantial turnover related to its Australian operations,” ACCC Acting Chair Delia Rickard said.
“It is important that penalties imposed for anti-competitive conduct act as a sufficient deterrent to contravening Australia’s competition laws. In that context, the ACCC will carefully consider the judgment.”