Presentation on theme: "Hypothetical – Recap and Report Back Lindsay Donders Competition Bureau Canada Richard Fleming Australia Competition and Consumer Commission ICN Cartel."— Presentation transcript:
Hypothetical – Recap and Report Back Lindsay Donders Competition Bureau Canada Richard Fleming Australia Competition and Consumer Commission ICN Cartel Workshop, Panama City 2012
Hypothetical – the industry Crop protection chemical market. Annual Chemical Association Conference. Technical Committee responsible for collecting and circulating market intelligence.
Hypothetical – the parties (1) CropPro –Immunity applicant –US $600 million per year AgForce –US $900 million per year –Allegedly initiated the agreements –Chair of the Technical Committee Rural Pro –US $600 million per year
Hypothetical – the parties (2) Together, CropPro, AgForce, and RuralPro make up 60% of the global crop protection chemical market. Each company has: –Manufacturing facilities around the world; and, –A sales office in the capital city of all countries with ICN membership.
Hypothetical – the offence (1) Arrangements to minimize the financial impact of the biggest selling crop protection chemicals coming off patent. Prevent the emergence of new competitors manufacturing low cost generics. Each company agreed to manufactured a generic version.
Hypothetical – the offence (2) Agreed to price differential between generic and branded products – generics sold at 60% of branded price. Limit the possibility of excess production by scheduled “maintenance” of production facilities. Discussion and exchange of pricing information between competitors at local sales offices.
Hypothetical – the information sharing Marker management. Coordination of enforcement actions. Confidentiality. Waivers.
Hypothetical – the dawn raids Searches/raids/inspections of the targets in a number of jurisdictions. Evidence obtained: – s/faxes between competitors; –Know-how agreements; –Annual reports; –Sales data; and, –Monthly bulletins. Evidence obtained supports CropPro’s information.
Hypothetical – the investigation Following the raids, AgForce sought leniency in a number of jurisdictions. Witness interviews. Document production.
Hypothetical – private enforcement issues A large customer has sued CropPro for raising prices of crop protection chemicals, which prevented a generic competitor from selling chemicals to the customer.