ACCC Chairman Vows to Crack Down on Cartels and Price Fixing

The Australian competition regulator, the ACCC, is making significant progress in busting major cartels, according to its chairman Graeme Samuel. In a recent statement, Mr. Samuel expressed his hope that legislation introducing jail sentences for corporate crooks involved in price fixing will be brought in next year. The ACCC has introduced a leniency policy to encourage companies to come forward and admit their collusion, resulting in 11 serious cartels being exposed since its implementation. This policy has led to a significant increase in cartel detection, with an elite team established to deal with these complex cases.

Key Takeaways:

• The ACCC's leniency policy, introduced in June/July last year, has been instrumental in exposing 11 serious cartels since its implementation.
• The policy encourages companies to come forward and admit their collusion, and those who cooperate fully will be treated more favorably when penalties are handed down.
• The ACCC has established an elite team to deal with cartel detection, which is necessary due to the complex and secretive nature of these deals.
• Mr. Samuel believes that introducing jail sentences for corporate colluders would send a clear message that the ACCC means business.
• Prison sentences could be introduced for companies found guilty of price fixing, similar to the penalties in the United States.
• Currently, companies face fines of up to $10 million for each breach, while individuals face up to $1 million for each contravention.

Statistics:

• 11 serious cartels have been exposed since the implementation of the leniency policy.
• The ACCC has had only five successful prosecutions against cartels prior to the introduction of the leniency policy.
• Companies found guilty of price fixing face fines of up to $10 million for each breach.
• Individuals found guilty of price fixing face up to $1 million for each contravention.
• The scrap metal industry penalty in the Federal Court in Sydney totaled $485,000 (US$367,000) for cartel behavior involving price fixing and boycotts.

Sources:

• Asia Pulse, "ACCC on Brink of Busting Major Cartels", December 9, Asia Pulse - 09-12 1925