After the two companies admitted certain facts about their involvement in the price fixing arrangements, the Federal Court ordered APP’s Singapore branch to pay a penalty of $3.4m and Indah Kiat was ordered to pay $800,000.

Graeme Samuel, chairman of the Australian Competition and Consumer Commission (ACCC) said this outcome sends a strong message that the law applies to foreign cartels which cause harm to Australian consumers.

In joint submissions to the court by the ACCC and the two companies, APP Singapore and Indah Kiat both admitted that they had taken part in 16 meetings with competitors at what was referred to as the AAA Club, between December 2000 and January 2004.

At the meetings, they made arrangements or understandings with competitors about the average price of paper sold, and it was alleged that the companies gave effect to these arrangements in their Australian pricing.  None of the meetings occurred in Australia.

These orders mean that the Federal Court has now imposed total penalties of $8.2m on corporations involved in the AAA Club.

In January 2010, the Federal Court ordered APRIL Fine Paper Trading, a Singapore based company, and APRIL International Marketing Services Australia to pay $4m in penalties for their involvement in the AAA Club.

Samuel said, “This matter illustrates how the ACCC will pursue cartel arrangements made overseas by foreign corporations that affect Australian prices and consumers.”

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