Australia’s competition authority has taken legal action against what it calls cartel activity from four suppliers and three senior executives for alleged price fixing while supplying fresh vegetables to supermarket group ALDI.
The Australian Competition and Consumer Commission (ACCC) said it had taken civil proceedings in the Federal Court after what it alleged were breaches of Australia’s cartel laws.
WATCH THE VIDEO ABOVE: ALDI suppliers face price-fixing court action.
Know the news with the 7NEWS app: Download today 
A cartel exists when businesses agree to act together instead of competing with each other.
The alleged cartel conduct involved price fixing in the supply of fresh produce, including broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts and zucchini to ALDI stores in New South Wales, Victoria and Queensland between 2018 and 2024, according to the ACCC.
“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.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.”
The four suppliers accused of cartel conduct are Perfection Fresh Australia, Hydro Produce (Aust), Veli Velisha Fresh Produce and Velisha National Farms, and M. Fragapane & Sons.
The senior executives allegedly involved in cartel conduct are Director and Chief Executive of Veli Velisha Fresh Produce and Velisha National Farms, Catherine Velisha, and its Senior Sales Manager Kaushik Vora, as well as General Sales Manager Roberto Nave from M. Fragapane & Sons.
“In this instance, we allege that price fixing conduct involving some essential household vegetables took place across three states,” Cass-Gottlieb said.
“Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.”
The ACCC alleges two or more of the suppliers made, or attempted to make, arrangements or understandings to “fix, control or maintain” the price of certain vegetables on 28 occasions.
The competition authority also alleged that on 48 occasions, one or more of the suppliers then submitted prices to ALDI in accordance with these arrangements or understandings.
“The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate,” Cass-Gottlieb said.
The ACCC said they are seeking declarations, civil penalties, compliance orders and costs against the businesses, and declarations, civil penalties, disqualification orders, non-indemnification orders and costs against the individuals.
Stream free on
