Yazaki Corporation Orders to Pay Millions in Penalties for Collusive Conduct

Wednesday, 10 May 2017

The Federal Court has today ordered Yazaki Corporation (Yazaki), one of the world's largest makers of automotive electronics and wiring harnesses, to pay $9.5 million in penalties for engaging in collusive conduct with a competitor in the supply of wiring harnesses to Toyota Motor Corporation (Toyota). Yazaki is the parent company of Australian Arrows Pty Ltd.

In November 2015, the Federal Court found that Yazaki had engaged in collusion including the coordination of quotes to Toyota in Australia between 2003 and 2008. The case against Yazaki was brought by the Australian Competition and Consumer Commission (ACCC). Justice Besanko of the Federal Court held the conduct to be 'deliberate, sophisticated and devious' and including 'the manipulation of prices and components of prices so as to avoid arousing suspicion'.

Even though Yazaki's unlawful conduct took place in Japan, the Court found Yazaki to be subject to Australian law on the basis that it was carrying on a business in Australia at the relevant times.

Yazaki was also ordered to pay 85% of the ACCC's costs of the Federal Court proceedings.

The ACCC's full media release is available here.

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Important disclaimer: The material contained in this publication is of a general nature only and is based on the law as at 9 May 2017. It is not, nor is intended to be, legal advice. If you wish to take any action based on the content of this publication we recommend that you seek professional advice.