APP was fined $3.4m and its Indonesian division ordered to pay $800,000, following action by Australian Competition & Consumer Commission launched in 2006.

The penalties were handed down by the Federal Court after APP admitted to taking part in 16 secret meetings with competitors between December 2000 and January 2004.

The court found that during these secret meetings, which were referred to as 'the AAA Club', arrangements and understandings were agreed upon regarding the average price of paper sold in Australia.

ACCC chairman Graeme Samuel pointed out that the ruling heeded a warning to international cartels.

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

APP is one of the world's largest pulp and paper companies and has been dogged by controversy, especially over its environmental track record.

Last month, APP announced plans to relocate six endangered tigers.

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