FTC orders sesame oil-makers to halt price cartel, issuing ¥21.98 million fine
The Fair Trade Commission on Wednesday issued a cease and desist order to sesame oil manufacturer Kadoya Sesame Mills and Takemoto Oil & Fat for allegedly forming a price cartel.
Industry leader Kadoya was also fined ¥21.98 million. No fine was imposed on Takemoto because it voluntarily reported its law breaches under a leniency program before the FTC's investigations began.
According to the FTC, the two companies violated the antimonopoly law by repeatedly conspiring to raise the prices of sesame oil sold to food-makers S&B Foods and Marumiya. The two also raised the prices of sesame oil and roasted sesame sold to sauce-maker Fundokin Shoyu.
Kadoya and Takemoto account for 100% of the sesame oil products the three client companies procure. Roasted sesame supplied to Fundokin Shoyu is supplied by the two companies almost entirely.
The antitrust watchdog said that Kadoya and Takemoto formed the cartel in order to secure profits amid rising sesame prices due to production cuts caused by political unrest in Africa and a weaker yen.
Their cartel is believed to have affected consumers who bought sesame-related products made by the three client companies.
"It's not permissible at all to reflect increases in manufacturing costs in product prices through a cartel," even when the production costs are rising due to price hikes, FTC senior investigator Sen Kakibata told a news conference.
Kadoya officials said the company has filed a lawsuit with Tokyo District Court to seek the cancellation of the FTC order, while Takemoto agreed to comply with laws and regulations and prevent a recurrence.
The FTC also inspected Nisshin Oillio Group and Kuki Sangyo but did not find any violation of the antimonopoly law.
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