AUSTRALIA | The ACCC has taken court action against fresh produce suppliers, alleging breaches of Australia's cartel laws.
The ACCC has commenced civil proceedings in the Federal Court against four suppliers and three senior executives for alleged price fixing while supplying fresh vegetables to ALDI, in breach of Australia’s cartel laws.
The alleged cartel conduct involved price fixing in the supply of fresh produce, including broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts and zucchini, to ALDI stores in New South Wales, Victoria and Queensland between 2018 and 2024.
The ACCC alleges cartel conduct by each of:
- Perfection Fresh Australia
- Hydro Produce (Aust)
- Veli Velisha Fresh Produce and Velisha National Farms, its Director and Chief Executive Catherine Velisha, and its Senior Sales Manager Kaushik Vora
- M. Fragapane & Sons, and its General Sales Manager Roberto Nave.
“Cartel conduct, whether by coordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal,” ACCC Chair Gina Cass-Gottlieb said.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly. In this instance, we allege that price fixing conduct involving some essential household vegetables took place across three states."
Cass-Gottlieb said protecting competition in fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.
The ACCC alleges that on 28 occasions, two or more of the suppliers made, or attempted to make, arrangements or understandings that had the purpose, effect or likely effect of fixing, controlling or maintaining the price of broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts or zucchini.
The ACCC also alleges that on 48 occasions, one or more of the suppliers then submitted prices to ALDI in accordance with these arrangements or understandings.
“The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate,” Cass-Gottlieb said.
The ACCC is seeking declarations, civil penalties, compliance orders and costs against the businesses, and declarations, civil penalties, disqualification orders, non-indemnification orders and costs against the individuals.
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