Australia’s competition regulator said it is taking legal action against a handful of local fresh produce suppliers for “alleged price fixing”.
In a statement issued yesterday (1 September), the Australian Competition and Consumer Commission (ACCC) announced it had launched court proceedings against four businesses and three company executives for breaching the country’s cartel laws in the supply of fresh vegetables to discount retailer Aldi.
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The ACCC named the companies as Perfection Fresh Australia; Hydro Produce (Aust); Veli Velisha Fresh Produce and Velisha National Farms; and M. Fragapane & Sons [trading as Fragapane Farms].
Veli Velisha Fresh Produce was sold to Velisha National Farms in 2019, according to the regulator’s statement.
Catherine Velisha, a director and CEO of Veli Velisha Fresh Produce and Velisha National Farms, along with sales manager Kaushik Vora, were identified as among the executives in the suit.
Meanwhile, Roberto Nave, the general sales manager at M. Fragapane, is also included in the court proceedings.
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By GlobalDataIn what the ACCC described as “alleged cartel conduct”, the parties are accused of pricing fixing in the supply of fresh vegetables to Aldi stores in New South Wales, Victoria and Queensland between 2018 and 2024.
“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 in the statement.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.”
According to the ACCC, the case against the accused revolves around so-called “agile pricing”, where suppliers submit weekly quotes to stores. In the case of Aldi, the retailer uses agile pricing for vegetables such as broccoli, cauliflower and iceberg lettuce, the regulator added.
“The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate,” Cass-Gottlieb added.
Those actions will include civil penalties and disqualification orders.
The regulator went on to explain its accusations: “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.”
It added: “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.”
Outside of Australia business hours today (2 September), Just Food has reached out to the four companies named by the ACCC for comment.
