Tuesday, October 09, 2007
After years of denying it Richard Pratt agrees that his firm Visy systematically cheated consumers by colluding with Amcor to restrict competition. Recall that Amcor was a co-conspirator but was exempted from legal actions because it acted as a whistleblower. For a time Visy tried the defence that they were not really colluding but just taking Amcor for a ride - Visy wasn’t interested in restricting competition it just wanted Amcor’s customers and Amcor’s claims were delusional. This is a fascinating case with regulators exploiting ‘prisoner’s dilemma’ characteristics of collusive agreements and with the ACCC securing a fantastic victory for Australian consumers – well done. Anyone looking for a great PhD topic?