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NYK fined US$25m for cartel behaviour in Australia
THE Australian Federal Court has ordered Japanese ocean carrier Nippon Yusen Kaisha (NYK) to pay a US$25 million fine due to cartel behaviour, according to a report from shipping industry news outlet TradeWinds of Oslo.
NYK was engaged in the transportation of vehicles to Australia between 2009 and 2012 and the court found that a cartel operated from at least February 1997 and affected vehicles brought into the country by Japanese carrier and other shipping lines.
The $25 million fine is the second largest sum imposed by the Australian Competition and Consumer Commission (ACCC). The fine could have been double had NYK pleaded not guilty last year. The fine was calculated on the basis of 10 per cent of NYK's annual turnover in connection with Australia.
"The Australian community relies heavily on imported vehicles, so a long-standing cartel in relation to the transportation of those vehicles to Australia was of a significant concern. The sentence imposed on NYK by the Federal Court sends a strong warning to the industry and the business community at large," said Rod Sims, chairman of ACCC. "The CDPP and ACCC can and will criminally prosecute cartel conduct."
Fellow Japanese carrier Kawasaki Kisen Kaisha ("K" Line) was also charged with cartel behaviour by the ACCC in 2016 and is facing similar fines in South Africa, while the European Commission has cracked down on price fixing schemes with new rules established last summer.
NYK was engaged in the transportation of vehicles to Australia between 2009 and 2012 and the court found that a cartel operated from at least February 1997 and affected vehicles brought into the country by Japanese carrier and other shipping lines.
The $25 million fine is the second largest sum imposed by the Australian Competition and Consumer Commission (ACCC). The fine could have been double had NYK pleaded not guilty last year. The fine was calculated on the basis of 10 per cent of NYK's annual turnover in connection with Australia.
"The Australian community relies heavily on imported vehicles, so a long-standing cartel in relation to the transportation of those vehicles to Australia was of a significant concern. The sentence imposed on NYK by the Federal Court sends a strong warning to the industry and the business community at large," said Rod Sims, chairman of ACCC. "The CDPP and ACCC can and will criminally prosecute cartel conduct."
Fellow Japanese carrier Kawasaki Kisen Kaisha ("K" Line) was also charged with cartel behaviour by the ACCC in 2016 and is facing similar fines in South Africa, while the European Commission has cracked down on price fixing schemes with new rules established last summer.
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