Melbourne, Oct 16 - An Australian billionaire apologised on Tuesday for taking part in a price-fixing cartel in the A$2 billion ($1.8 billion) cardboard box market, in the country's largest antitrust case.
Richard Pratt, Australia's third-richest man with a personal fortune of A$5.4 billion, had a secret meeting with the boss of his main rival after the firms reached an understanding on price rises, Australia's corporate watchdog said in documents submitted in court.
The regulator, the Australian Competition and Consumer Commission (ACCC), asked a Federal Court judge to impose a record fine of A$36 million that was agreed with Pratt in a settlement reached last week. The previous record fine was A$15 million.
The regulator told the hearing of secret meetings held in hotels, motels, and parks between executives of Pratt's privately held Visy Industries and competitor Amcor Ltd, at which the two colluded on price increases.
Pratt, a prominent businessman and philanthropist, told reporters outside the court he took responsibility for Visy's actions.
"I sincerely regret what happened and I accept ultimate responsibility," he said.
ACCC lawyer Peter Jopling told the court an "over-arching understanding" was reached in early 2000 between Visy and Amcor to collaborate on prices. The agreement lasted until late 2004 and included four annual price increases of up to 8.5 percent.
The two companies in effect had a duopoly of the cardboard packaging market, with a combined market share of 90 percent. Customers included some of the country's largest food and beverage companies, including Foster's Group Ltd, Coca-Cola Amatil Ltd and Goodman Fielder Ltd.
Both Amcor and Visy face a class action law suit being run by law firm Maurice Blackburn Cashman, with food and drink companies seeking damages of between A$300 million and A$700 million for the amount they say they were overcharged by the cartel.
Amcor has immunity from prosecution after it brought the allegations to the ACCC in November 2004, and said in a statement the executives involved were replaced three years ago.
Visy lawyer Jonathan Beach told the court the company acknowledged liability and repented its contravention of antitrust laws.
The judge adjourned the hearing to rule on the fines to be imposed on Visy and two of its senior executives.
Visy has had previous run-ins with the ACCC, including an investigation that resulted in a fine of A$500,000 and a separate unsuccessful investigation.
Pratt has been ranked the country's third-richest businessman by Business Review Weekly magazine.