A sevenfold increase on freight rates on key global trade routes in two years is one of the reasons driving an investigation by the global alliance Five Eyes.
The Australian Competition & Consumer Commission (ACCC) chair Rod Sims said companies are now on notice that it and its four global counterparts – US Department of Justice and Federal Bureau of Investigation, Canadian Competition Bureau, NZ Commerce Commission, and UK Competition and Markets Authority – will be focusing on illegal conduct, including collusion, in global supply chains.
The working group was formed in light of the pandemic-induced disruptions that have led to much higher freight rates and more expensive goods for consumers.
Sims said the complex network that makes up the global freight supply chain meant international partnerships were key in finding any anti-competitive conduct.
“COVID-19 has caused the supply chain disruptions the world is currently experiencing, but the purpose of this working group is to detect any attempts by businesses to use these conditions as a cover to work together and fix prices.
“Australia is an open, trade-exposed economy, and like the other international agencies in this working group, we have a very strong interest in preserving strong competitive markets for global trade,” Sims said.
Increased demand for containerised cargo and heavy congestion across the global supply chain have caused disruptions and delays to most parts of the economy, from agriculture to health care.
Types of anti-competitive conduct the working group will be watching for include cartels and any other activities that materially impact competition, such as exclusionary arrangements by firms with market power.
“We will be sharing intelligence to identify any behaviour that restricts or distorts competition, and companies are now on notice that the ACCC and its international counterparts will be ready to act,” Sims said.
In 2019, the ACCC signed a cooperation agreement with the FBI to combat cartels and other anti-competitive behaviour.
The following year, the Multilateral Mutual Assistance and Cooperation Framework for Competition Authorities (MMAC) was established by the US Department of Justice, US Federal Trade Commission, the UK Competition and Markets Authority, the New Zealand Commerce Commission, the Competition Bureau Canada, and the ACCC.
