Shipping cartel fines now total $83.5 million after WWO conviction.
M2 PRESSWIRE-February 5, 2021-: Shipping cartel fines now total $83.5 million after WWO conviction
(C)1994-2021 M2 COMMUNICATIONS
RDATE:04022021
Norwegian-based global shipping company Wallenius Wilhelmsen Ocean AS (WWO) has been convicted of criminal cartel conduct and ordered by the Federal Court to pay a fine of $24 million, in a case prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).
This brings to a close an extensive investigation by the ACCC into an international cartel involving several international shipping companies in relation to the shipping of vehicles to Australia from Asia, Europe and the US on behalf of major car manufacturers.
In Australia, three international shipping companies have been convicted and fined a total of $83.5m in relation to this cartel, after detailed investigations by the ACCC. In August 2017, Nippon Yusen Kabushiki Kaisha (NYK) was fined $25 million, while K-Line was fined $34.5 million in August 2019, which remains the largest criminal fine ordered under the Competition and Consumer Act.
Yesterday, the Federal Court found WWO had engaged in a cartel with the other shipping companies in relation to the transportation of vehicles such as cars, trucks and buses to Australia between June 2011 and July 2012.
WWO along with other multinational shipping companies gave effect to a cartel provision by allocating major vehicle manufacturing customers between themselves including on certain shipping routes to Australia. Justice Wigney found that this cartel had the capacity to limit or distort the competitive setting of freight rates and was likely or at least had the potential to impact on the prices paid by Australian consumers.
WWO pleaded guilty on 18 June 2020 and was convicted and sentenced yesterday afternoon for one criminal charge of giving effect to cartel provisions.
WWO also admitted guilt in relation to two further offences of giving effect to cartel provisions in 2009 which was taken into account on sentence.
Justice Wigney noted that this was the third criminal prosecution arising from a global cartel in a market of considerable economic importance for Australia.
He said that "on just about any view, this was an extremely serious offence against Australia's laws which prohibit cartel conduct" and WWO's conduct was covert, deliberate, systematic, and involved planning and deliberation.
He also said that while the objective seriousness of WWO's conduct was less than NYK and K-Line...
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