Oz Regulator Says Supplier Admits to Price Fixing
The government says that in 2008 and 2009, NSK and at least two of its competitors exchanged information about proposed price increases to maintain or control the price of bearings to aftermarket customers.
Components maker NSK Australia is facing a federal court hearing after admitting to cartel conduct relating to the supply of ball and roller bearings for use in motor vehicles and industrial applications.
The case was brought after an international investigation involving competition agencies in the U.S., Europe and Canada.
Announcing the court proceedings set for Feb. 5 in Sydney, the Australian Competition and Consumer Commission says NSK has cooperated with the investigation and has admitted to the conduct.
The commission says that in 2008 and 2009, NSK and at least two of its competitors made two separate cartel arrangements in which they exchanged information about proposed price increases for the purpose of maintaining or controlling the price of bearings to their aftermarket customers.
“Stopping cartel conduct is an ACCC enforcement priority, as it causes harm to both consumers and to the competitive process,” Chairman Rod Sims says in a statement.
The commission is seeking monetary penalties, injunctions and a compliance program.
Cartel activity in Australia can incur penalties including fines of up to A$10 million ($8.9 million).
NSK, founded in 1916, has 60 manufacturing bases and sales offices in 26 countries and is one of the world’s largest ball- and roller-bearings suppliers. NSK Australia has operated since 1965 as the warehousing and distribution outlet for Australia and New Zealand.
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