I Ceee...*

In 1999, the Justice Department broke up a “vitamin cartel” that had been led by European companies,  [Roche and BASF]. The companies overcharged big food and beverage makers like Kellogg, Coca-Cola and Nestlé. Eventually the makers of bulk vitamins agreed to pay more than $1.5 billion to settle the accusations.

Soon afterward, the Chinese gained a dominant share, and after several big European producers left the business, the Chinese companies began raising prices. By 2001, the Chinese companies were acting as a cartel and fixing the price of vitamin C.

A group of American companies accused the Chinese producers of acting in concert to raise prices in violation of United States antitrust laws. The case is significant because China produces about 80 percent of the world’s supply of ascorbic acid, or vitamin C, an important ingredient in food and soft drink items as well as animal feed and cosmetics.

The Chinese vitamin C makers was ordered by a United States District Court to pay $162.3 million in fines after a jury found the companies guilty of price-fixing.

The case was striking because of the unusual defense that the Chinese companies mounted. While acknowledging in court that they had colluded to set prices, lawyers said they were compelled to do so by the Chinese government.  

The verdict was the second time in two decades that vitamin makers had been accused of violating antitrust laws.         Just a thought.