The Australasian Food Group, trading as Peters Ice Cream, has been ordered to pay a $12 million penalty by the Federal Court for engaging in anti-competitive conduct, in proceedings brought by the ACCC.
Below is the statement issued by Australasian Food Group Pty Ltd in response:
Australasian Food Group Pty Ltd (AFG) acknowledges the resolution of legal proceedings in the Federal Court that were commenced by the Australian Competition and Consumer Commission (ACCC) regarding a distribution agreement between AFG and PFD that operated between 2014 and 2019.
The Federal Court found that whilst an exclusivity clause in the distribution agreement did not have the purpose or actual effect of substantially lessening competition in the market for the supply by manufacturers of single serve ice cream and frozen confectionary products in Australia, it did have the likely effect of substantial lessening competition in the market.
The Federal Court has ordered that AFG pay a penalty of $12 million in respect of the contravention, being the penalty jointly proposed by AFG and the ACCC as appropriate.
The relevant distribution agreement was not used from the end of 2019 and has been replaced with a new distribution agreement that does not contain any exclusivity.
AFG is pleased to resolve this matter, given that the relevant agreement lapsed some years ago. The proceedings do not relate to AFG’s current business operations, product offering or customer service. AFG remains committed to exciting Australian consumers by manufacturing and delivering the best possible ice cream experience.
Commenting on the conclusion of the proceedings, a spokesperson for AFG said: “While the distribution agreement with PFD did not have the purpose or actual effect of constraining competition, we accept that a likely effect of the distribution agreement was a substantial lessening of competition.
In concluding this matter AFG acknowledges the constructive engagement with the ACCC, and has welcomed the opportunity to further strengthen its culture of regulatory compliance.”
