Sharechat Logo

Commerce Commission appeals cardboard cartel ruling

Friday 6th May 2011

Text too small?

The Commerce Commission is appealing a High Court decision last month that limited its claims in a case alleging price fixing by Australian packaging giants Visy Board Pty and Amcor for customers including Fonterra.

The High Court at Auckland reduced the number of claims the commission can pursue against Visy and its former general manager Rod Carroll. The decision allowed the commission to take to trial claims that Visy Board and Amcor Ltd fixed prices for a Fonterra tender, and were parties to an over-arching understanding to fix prices between them.

Justice Paul Heath said that the commission had demonstrated a plausible foundation for bringing a case on the Fonterra tender and the over-arching understanding, and that there was a serious issue to be tried on the merits. Other claims were ruled to be outside the commission's jurisdiction.

"The commission has decided to appeal this decision. The issue is important to us not only for this case, but because we believe the judgment is wrong in law and sets an unhelpful precedent for future enforcement cases," said commission general counsel for enforcement Mary-Anne Borrowdale.

The Federal Court of Australia has imposed penalties against Visy and its owner, Richard Pratt, and against Carroll. But Visy and Carroll deny that the cartel arrangements extended to New Zealand and objected to the commission's ability to pursue its claims in New Zealand.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA
2nd December 2021 Morning Report
The New Zealand Refining Company Limited (NZX: NZR) Launches Share Purchase Plan
Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive