Sharechat Logo

Price-fixing Brazilian fridge parts maker seeks settlement

Monday 10th October 2011

Text too small?

The Commerce Commission has settled with Empresa Brasileira de Compressores S.A. (Embraco), which makes refrigeration compressors, for fixing prices in New Zealand.  

The competition regulator and the manufacturer today made a joint submission to the High Court in Auckland on what kind of penalty Embraco should face for engaging in a cartel.

The commission alleges the Brazilian company met with a competitor and exchanged information relating to the local supply of fridge compressors in 2005 and 2006, leading to senior staff agreeing to increase prices for units shipped into New Zealand.

The commission began its investigation in 2009 after receiving information from a whistleblower, who subsequently was granted immunity.

“Collusion between major players in any market has the potential to harm other competitors,” competition general manager Kate Morrison said in a statement. “Our leniency programme has proved effective at flushing out participants in a number of such illegal agreements.”

The government is considering whether to introduce criminal penalties for cartel behaviour, which would introduce stiffer fines and the prospect of imprisonment for colluding on prices.

The commission has been an advocate of introducing criminal sanctions, and is currently pursuing international airlines and freight forwarders, alleging a global air cargo cartel.

More details of today’s settlement will be announced once the judge has decided on the size of Embraco’s penalty.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

7th December 2021 Morning Report
Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance
PGG Wrightson Limited (NZX: PGW) FY22 Operating EBITDA forecast to better last year
Vulcan Steel Limited (NZX: VSL) Trading Update & Earnings Upgrade
6th December 2021 Morning Report
Synlait Milk Limited (NZX: SML) Partnership to enhance soil health; test regen ag practices
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