AUSTRALIAN
Competition & Consumer Commission (ACCC), the country's competition watchdog,
has for the first time used its power to launch criminal prosecutions for
cartel behaviour in a case filed against Japanese shipping group NYK.
It's
the first time the ACCC has used its criminal cartel powers, which attract
stiff penalties including jail time, since they were granted in 2009 following
the watchdog's exposure of collusion between packaging giants Visy
and Amcor, The Australian reported.
If
found guilty, corporations face severe fines of up to AUD 10 million (US$7.6 million),
10 per cent of their annual turnover or three times their ill-gotten gains,
whichever is larger, while individuals can be jailed for up to 10 years.
An
NYK spokeswoman said: "I do not feel that it is appropriate to comment at
this stage other than to note that NYK has co-operated fully with the ACCC
during the course of its investigation."
The
exact charges against NYK are not known. The ACCC declined to comment.
However,
in March the US Department of Justice (DoJ) said it had jailed an executive
of the company, Susumu Tanaka, for 15 months for his role in a price-fixing and
bid-rigging conspiracy over international shipping of roll-on, roll-off cargo
such as cars and trucks.
This
followed NYK paying a US$59.4 million fine in December
after pleading guilty over its involvement in the same conspiracy from 1997
until 2012.
Four
companies, including NYK, pleaded guilty to participating in the RO-RO cartel
and were fined a total of $230 million, the DoJ said. Eight executives were
charged, with four, including Tanaka, jailed while the other four remain as
"fugitives from justice".
The
DoJ's latest scalp came last week when Norwegian line Wallenius Wilhelmsen
Logistics pleaded guilty to price fixing and agreed to pay a $98.9
million fine.
In
documents filed with the US District Court in Baltimore, Maryland,
the DoJ said that at meetings of the cartel participants "discussed and
exchanged prices for certain customer tenders so as not to undercut each other's
prices".
Source
: HKSG.