CDPP v Alkaloids (2022)

Federal Court of Australia (NSW Registry)
[2022] FCA 1424
Justice Abraham

Catchwords

CRIMINAL LAW – sentencing – cartel conduct – corporate offender pleaded guilty to two offences of giving effect to a cartel provision and one offence of attempting to make a contract, arrangement or understanding containing a cartel provision – corporate offender admitted seven additional offences – where company generates revenue from sale of SNBB, hyoscine hydrobromide and Duboisia leaf

Legislation

Competition and Consumer Act 2010 (Cth) ss 2, 44ZZRF(1), 44ZZRG(1), 45AF(1), 45AG(1), 79(1)(aa)

Crimes Act 1914 (Cth) ss 15A(1), 16A, 16BA

Trade Practices Act 1974 (Cth) ss 44ZZRF(1), 44ZZRG(1)

Fines Act 1996 (NSW) s 10

Summary

On 1 December 2020 criminal cartel charges were been laid against pharmaceutical ingredient company, Alkaloids of Australia Pty Ltd, and its former export manager, Christopher Kenneth Joyce. Each were been charged with 33 criminal offences.

The ACCC alleges Alkaloids of Australia and overseas suppliers of the ingredient SNBB (hyoscine butylbromide) ‘made and gave effect to arrangements to fix prices, restrict supply, allocate customers and/or geographical markets, and/or to rig bids for the supply of SNBB to international manufacturers of generic antispasmodic medications’ over a period of almost 10 years.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions and was first listed in the Downing Centre Local Court for 19 January 2021.

On 26 October 2021 Christopher Kenneth Joyce pleaded guilty to criminal cartel conduct and was committed to the Federal Court of Australia for sentence.

In November 2021 Alkaloids of Australia pleaded guilty to cartel conduct.

On 29 November 2022 Justice Abraham fined Alkaloids just under $2m for a total of three charges.

Alkaloids’ former export manager, Christopher Kenneth Joyce, was convicted and sentenced to two years and eight months’ imprisonment (see judgment)