6 May 1999: The Australian Competition and Consumer Commission (ACCC) has reaffirmed that ACI Glass Packaging had not taken advantage of regulatory arrangement changes to increase prices.
However, th…
6 May 1999: The Australian Competition and Consumer Commission (ACCC) has reaffirmed that ACI Glass Packaging had not taken advantage of regulatory arrangement changes to increase prices. However, the commission warned that increased competition had not lowered ACI“s profits and that it has requested extra cost information from ACI for its next report. In its annual monitoring report on the packaging firm, the ACCC has confirmed the finding of its first report in December 1997. A spokeswoman for the ACCC said the reports followed earlier monitoring of ACI by the old Prices Surveillance Authority, after fearing that the company had the opportunity to misuse its market power, given its stature as the country“s major manufacturer. However, the ACCC confirmed that this had not occurred. “Some price reductions have occurred and the wine industry in particular has benefited,” ACCC acting chairman Allan Asher said in the statement. “While ACI customers generally consider glass container prices still too high, perceptions about prices and discounts have improved since the first report,” he added. “The gap between ACI and overseas prices has narrowed.” Asher said the “striking change” since the first report was the “increased competitive pressure in the glass container market”. “This is particularly a result of increased international contacts and availability of competitively priced imports,” he said. “There had been a significant increase in the number of agents for imported glass operating in Australia offering products from a range of sources.” However, Asher noted that while ACI was under increased competitive pressure, profits continued at high levels. “The ACCC was not satisfied with the cost data provided to it and has consequently asked ACI to provide additional cost data for the third monitoring report to be released later this year.” ACI was formerly owned by UK conglomerate BTR Plc and was sold to US company Owens-Illinois in 1998.