ACCC files against vitamin C cartel
12 Feb 2003
The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Australian Federal Court against three of the largest producers of vitamin C.
The ACCC alleges that F.Hoffmann-La Roche (Switzerland), BASF Aktiengesellschaft (Germany), Takeda Chemical Industries (Japan), various related companies in the Asia Pacific region and foreign executives 'entered into and gave effect to an arrangement the purpose and effect of which was to fix the global price of human vitamin C'.
The ACCC also alleges that an integral part of the arrangements was the allocation of global market shares amongst the foreign companies for the distribution of human vitamin C. None of the Australian subsidiaries have been joined to the action.
The proceedings arise from alleged agreements that were made and implemented overseas between January 1991 and October 1995, and which are part of the broader global vitamins cartel which ceased in about 1999.
In 2001, the ACCC was successful in securing record penalties of $26 million against Roche Vitamins Australia Pty Ltd, BASF Australia Limited, and Aventis Animal Nutrition Pty Ltd for their involvement in arrangements to fix prices and allocate market shares of animal vitamins A and E and pre-mix.
The ACCC has obtained leave of the Australian Federal Court to serve the proceedings on the some of the respondents located in Switzerland, Germany and Hong Kong, and is preparing to seek similar leave in respect of the remaining respondents.
