February 28, 2014
In two interesting trade association related cases that caught my eye today, the German (Bundeskartellamt) and Japanese (Fair Trade Commission – “JFTC”) antitrust authorities have taken action against two trade associations for their alleged participation in price-fixing agreements with members (see: here and here).
In the German case, the Bundeskartellamt has imposed a fine of about 17 million Euros against four wallpaper manufacturers, the companies’ representatives and their trade association. According to the Budeskartellamt, Germany’s leading wallpaper makers fixed prices during a three-year period through industry trade association meetings. Interestingly in this case, the association’s managing director is said to have actively circulated price increase information from one wallpaper firm to other association members.
In the Japanese case, the JFTC has issued a cease and desist order against a medical association for fixing the fees for voluntary flu shots offered by its members. According to the JFTC, the medical association fixed voluntary flu shot fees in several local markets and circulated the fixed fee information to members.
Both decisions are a reminder of the potential hazards of associations participating in the competitively sensitive aspects of their members’ business activities (particularly prices, markets and output), including being used as a vehicle or conduit for the exchange of competitively sensitive information.
For more about Canadian competition law and associations see: Associations and Association Compliance.
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