According to an article published in Splash247 News, Japanese shipping company Kawasaki Kisen Kaisha Ltd (K-Line) has been convicted of criminal cartel conduct.
What happened?
In addition to being convicted, it was ordered by the Federal Court in Australia to pay a fine of A$34.5m ($23.5m) in the latest of a long-running series of fines dished out around the world to many of the world’s top car carrier firms.
The Federal Court found K-Line engaged in a cartel with other shipping companies in order to fix prices on the transportation of cars, trucks, and buses to Australia between 2009 and 2012.
Largest ever criminal fine
K Line’s fine of A$34.5m is the largest ever criminal fine imposed under the Competition and Consumer Act. K-Line pleaded guilty on April 5, 2018, following an extensive criminal investigation by the local competition authorities.
Transportation prices hit
The cartel operated from at least February 1997 and impacted the transportation prices of cars, trucks, and buses to Australia from the US, Asia, and various European countries. K-Line, and other shipping lines transported these vehicles on behalf of major car manufacturers such as Nissan, Suzuki, Honda, Toyota and Isuzu, and others.
Inflated cost slows economic growth and innovation
“Cartel conduct, such as that engaged in by K-line, not only cheats consumers and other businesses through inflated prices and costs, but also restricts healthy economic growth and discourages innovation,” said Australian Competition & Consumer Commission (ACCC) chair Rod Sims, adding: “This decision is a serious warning to businesses and will deter others seeking to join or start a cartel. Businesses should know that engaging in cartel conduct will result in ACCC scrutiny and result in potentially very serious consequences.”
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Source: Splash247News
