Three European animal vitamin suppliers have agreed to total penalties of A$26 million in a case of alleged price fixing and market sharing brought by the Australian Competition and Consumer Commission (ACCC), the ACCC informed. The settlement was reached with Roche Vitamins Australia Pty Ltd (RVA), BASF Australia Ltd (BAL) and Aventis Animal Nutrition Pty Ltd (AAN), formerly Rhone-Poulenc Animal Nutrition Pty Ltd.
As part of a proposal to settle the case, recommended penalties of A$15 million for RVA, A$7.5 million for BAL and A$3.5 million for AAN were agreed to by the respondents, the ACCC chairman, Allan Fels, said.
The Federal Court is yet to rule on the settlement and the parties recognise the settlement is only a recommendation to the court, which can determine the penalties, the ACCC said. "The penalties being recommended to the court in the case of RVA and BAL are higher than any penalties imposed by the court in the history of trade practices proceedings in Australia."
The market watchdog alleged that price fixing and market sharing arrangements in contravention of the Trade Practices Act existed between the three companies from mid-1994 to 1996 and continued between RVA and BAL from 1997 to 1998.
Arrangements were allegedly made for the supply of animal vitamins A and E, used in animal feeds in the poultry and swine industries, and of a pre-mix containing those vitamins.