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ACCC v Yazaki Corporation (No 2)

[2015] FCA 1304 (Federal Court of Australia, South Australian Registry)

 

File details

Applicant ACCC
Respondents Yazaki Corporation
Australian Arrow Pty Ltd (second respondent)
Registry South Australia
Claims Cartel conduct (market sharing and price fixing)
Hearing 3 December - 12 December 2014
Judgment

The Federal Court found that Yazaki Corporation engaged in collusive conduct with its competitor when supplying wire harnesses to Toyota in Australia. The conduct took place in 2003 and 2008 and breached the exclusionary conduct provisions of the CCA and the Competition Code of Victoria.

ACCC claims

Cartel conduct, market sharing and price fixing

'The ACCC alleges that Yazaki and Australian Arrow engaged in cartel conduct, market sharing and price fixing, in relation to the supply of wire harnesses to Toyota Motor Corporation and its related entities in Australia. Wire harnesses are electrical systems that facilitate the distribution of power and the sending of electrical signals to various components of a motor vehicle.' (ACCC press release)

'The ACCC alleges that between 2003 and at least late 2009, Yazaki and Australian Arrow made and gave effect to cartel arrangements with a competitor involving coordination of their responses to requests for quotations issued by Toyota Motor Corporation for the supply of wire harnesses to be used in the manufacture of the Toyota Camry.

In particular, the ACCC alleges that there was an overarching cartel arrangement between Yazaki and a competitor which remained operative until at least late 2009 to meet in relation to requests for quotations received from automotive manufacturers, to agree on the allocation of wire harnesses to be supplied by each of them (or their subsidiaries) to the manufacturer, and to exchange and agree on the prices they would submit to the manufacturer.

It is also alleged that Australian Arrow and Yazaki made and gave effect to agreements of this type in relation to the supply of wire harnesses for use in the manufacture of the 2006 and 2011 models of the Toyota Camry, and that Australian Arrow engaged in cartel conduct in relation to harnesses to be used in manufacturing the 2002 model Camry.

The ACCC alleges that this conduct by Yazaki and Australian Arrow contravened sections 45 and 44ZZRK (in relation to conduct from 24 July 2009) of the Competition and Consumer Act 2010.' (ACCC press release)

'The ACCC is seeking pecuniary penalties, declarations, injunctions and costs.' (ACCC press release)

Other agencies

'The ACCC’s action follows similar enforcement action against Yazaki and other cartel participants by competition regulators in the US and Japan which involved the supply of wire harnesses and other automotive components to a number of automobile manufacturers.' (ACCC press release)

 

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