The Federal Court recently ruled that Yazaki Corporation, the parent company of Australian Arrow Pty Ltd, had engaged in collusion with a competitor in the supply of wiring harnesses to Toyota Motor Corporation in Australia.

Yazaki, based in Japan, supplies to Toyota electrical wiring harnesses used in the manufacture of the Toyota Camry. The Court found that in 2003 and 2008 Yazaki made arrangements with a competitor that included the coordination of quotes to Toyota, in breach of the Competition and Consumer Act 2010. Even though the conduct took place in Japan, the Court found that it was subject to Australian law on the basis that Yazaki was carrying on a business in Australia.

The Court will now set a date for a hearing to determine what orders should be made as a result of Yazaki’s conduct.

The case against Yazaki was brought by the Australian Competition and Consumer Commission (ACCC), which has the power to prosecute breaches of the Act. In 2015, Chairman of the ACCC, Rod Sims, announced that:

  1. cartel conduct was an enforcement priority area for the ACCC, and
  2. the ACCC had established a dedicated group exclusively responsible for investigating cartel conduct and had around 12 ‘in-depth’ investigations on foot.

This article was written by Christian Teese – Associate, Automotive Industry Group | HWL Ebsworth Lawyers.

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