Australian Competition and Consumer Commission v Mitsubishi Electric Australia Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought a case against Mitsubishi Electric Australia Pty Ltd (MEA) in the Federal Court of Australia, alleging violations of the Competition and Consumer Act 2010 (Cth). MEA admitted to engaging in resale price maintenance by inducing a distributor, Mannix Electrical Pty Ltd (Mannix), not to sell specified products below certain prices and withholding supply to Mannix for selling below those prices. The ACCC and MEA jointly proposed penalties for these actions.

The primary legal issue before the court was to determine the appropriate penalties for MEA's admitted contraventions of the Act. The court had to consider the nature and extent of MEA's conduct, the financial benefit gained, and the appropriate deterrence and punitive measures under the Act. The court needed to assess whether the proposed penalties were within the appropriate range for such breaches.

The court found that MEA's conduct was deliberate and involved upper management, with clear evidence of their awareness and involvement in the contraventions. The court acknowledged the ACCC's and MEA's submissions that the proposed penalties were appropriate and fell within the range of what a court would order. The court considered the maximum penalties available under the Act and the factors relevant to determining the appropriate penalty. The court accepted that the proposed penalties adequately reflected the seriousness of the contraventions and the need for deterrence and punishment.

The court imposed pecuniary penalties of $500,000 for each of the two instances in 2009 and 2010 of inducing Mannix not to sell at a price less than specified by MEA, and $1.2 million for withholding supply to Mannix in 2011 due to Mannix selling below the specified price. The court also imposed declaratory and injunctive orders as proposed by the ACCC and MEA.