The ACCC action relates to Pratt's testimony during an inquiry into the Visy-Amcor cartel, which led to civil proceedings, resulting in Visy being fined $A36 million ($US34.17 million).

Pratt is accused of four counts of knowingly giving false or misleading evidence during the investigation, and could face a jail sentence of up to four years and/or a maximum fine of $35,200.

Melbourne University professor of commercial law Ian Ramsay said the criminal action was appropriate given the seriousness of cartel conduct and the manner in which the collusion between Visy and Amcor was "carefully and deliberately concealed".

Prof. Ramsay said the ACCC had shown that it would not tolerate false statements.

"I think the ACCC has sent a message that says `where we believe that as part of our investigation, we have had false evidence presented to us, we will prosecute'," he said.

"They are not prosecuting him for running a cartel because we still do not have in this country criminal penalties for cartel conduct.

"The government is looking to introduce them."

Prof. Ramsay said Australia was susceptible to cartels, being a relatively small economy, with many industries dominated by a small number of companies.

"Cartels have the potential to wreak such harm to economies because they are anti-competitive and can drive other companies out of business, and will by definition harm consumers by ratcheting up prices.

"That's why we need strong laws, including criminal penalties for cartel conduct. It's quite important."

He said the Amcor-Visy collusion was at the serious end of cartel conduct.

"It went for almost five years and as the judge (in the civil proceedings) said it went to the highest levels of Visy - the chairman himself and Amcor chief executive.

"And it had the potential to cause significant harm because it involves such an important industry: every Australian consumes products that relate to cardboard packaging.

"Of course Amcor had more than 90 per cent of the market when it conducted the cartel."

Prof. Ramsay said it was hard to predict the outcome of the current proceedings but it could be settled out of court.

"He might plead guilty as he did with the civil charge.

"Last year, he (Pratt) denied it then for whatever reason, reached a settlement with the ACCC, which was approved by the judge.

"That fine was agreed between the parties."

An ACCC statement said Pratt had not yet entered a plea in the matter.

"The ACCC must presumably feel it has a strong case because if it loses, it would cause reputational damage to the regulator," Prof. Ramsay said.

"Even if the court was able to impose a fine - and we speculate here - the mere fact of the imposition of a criminal penalty is a very significant adverse finding, should that result."

He said that given the secretive nature of cartels, it was important to retain the conditional immunity policy that can be granted to cartel participants if they accurately, quickly and cooperatively disclose information that assists an investigation.

Amcor was granted conditional immunity during the civil proceedings and avoided being fined.

"Conditional immunity has a good purpose behind it ... because cartels can be difficult to uncover.

"Amcor did the right thing.

"But a company that takes advantage of the immunity policy doesn't get off scott free: class actions can unfold from harmed consumers and we're seeing that.

"It doesn't exclude private action."

(AAP)

Amcor Chief Executive Ken MacKenzie said the investment is consistent with his group's strategy of targeting growth in tobacco packaging in emerging markets.

He said funds raised through the placement will allow AMVIG to advance its strategy of leading the consolidation of the tobacco packaging market in China.

($1 = HK$7.80)

bruce.hextall@thomsonreuters.com

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Amvig claims the title of market leader, with 17 per cent of market share, in mainland China's tobacco packaging industry.

Amcor said it is acquiring 78.3 million shares in Amvig at HK$A8.94 ($US8.54) per share, increasing its current 35.4 per cent stake to 39.3 per cent.

The placement price is a five per cent premium over the weighted average Amvig share price for the nine trading days prior to 20 June 2008.

Amcor chief executive Ken MacKenzie said Amvig would use the placement funds to help drive its consolidation strategy in China's tobacco packaging industry.

"Amcor is committed to being a substantial shareholder in Amvig and the opportunity to subscribe for new shares has enabled us to increase our ownership to around 40 per cent," Mr MacKenzie.

"This investment of HK$700 million is consistent with our stated strategy of targeting growth in tobacco packaging in emerging markets."

At 1030 AEST Amcor stock had fallen 12 cents to $5.08.

(AAP)