CDPP v Kawasaki Kisen Kaisha Ltd

Federal Court of Australia
[2019] FCA 1170

Justice Wigney

Catchwords

CRIMINAL LAW – sentencing – cartel conduct – giving effect to a cartel provision – where offender is a corporation – where offender pleaded guilty – rolled up offence – appropriate pecuniary penalty – where offender provided bulk shipping services of “roll on, roll off” cargo to Australia

In brief

In 2016, following an investigation by the ACCC, the Commonwealth Department of Public Prosecutions (CDPP) charged Kawasaki Kisen Kaisha (K-Line) with cartel conduct in contravention of the Competition and Consumer Act 2010. This relates to the same cartel for which the first criminal conviction was imposed in 2017 (see NYK).

The charges allege cartel conduct relating to the international shipping of cars, trucks, and buses to Australia between July 2009 and September 2012.

K-Line pleaded guilty to cartel conduct. Sentencing judgment was delivered on 2 August 2019.

K-line was ordered to pay a fine of $34.5 million for giving effect to a cartel provision contrary to s 44ZZRG(1).

The maximum penalty available was $100m, with discounts given for an early guilty plea and cooperation.