The Australian Competition and Consumer Commission (ACCC) has said that it has started legal proceedings in the Federal Court against George Weston Foods for allegedly attempting to fix flour prices in 1999.

The ACCC has alleged that the company and a former director, Paul Loneragan, attempted to induce a competitor to increase the wholesale price of wheaten flour, in contravention of Australia's Trade Practices Act.

Price fixing in Australia can carry a penalty of up to A$10m (US$5.6m).

George Weston Foods is a wholly owned subsidiary of international food and ingredients company Associated British Foods, reported Dow Jones International News.