Australian supermarket giant Woolworths has been fined $9 million for its involvement in an anti-competitive arrangement among laundry detergent manufacturers. The penalty, handed down by the Federal Court, is the largest ever imposed on a party that was an accessory to competition law breaches in Australia.
The Australian Competition and Consumer Commission (ACCC) brought action against Woolworths after it admitted to being knowingly concerned in an understanding between Colgate-Palmolive, PZ Cussons and Unilever to control the supply and price of detergent. The arrangement involved stopping the supply of standard concentrate laundry detergents in early 2009 and switching to ultra concentrates, which are cheaper to produce, store and transport.
ACCC Chairman Rod Sims said the penalty reflects the seriousness of the contraventions. “This penalty is the largest the ACCC has obtained against a party that was an accessory to competition law breaches by being knowingly concerned in anticompetitive conduct,” he said. Federal Court Justice Jayne Jagot noted the penalty reflects the objective seriousness of the breaches.
In a statement, Woolworths acknowledged that the behaviour of one of its former buyers was not consistent with its high standards of competition law compliance. The company said the proceedings have been settled with limited admissions in relation to one of the claims made by the ACCC.
Colgate-Palmolive was previously fined $18 million for its role in the cartel. PZ Cussons is scheduled to face court on 7 June, while Unilever was granted immunity for alerting the ACCC to the illegal arrangement.
