The ACCC was recently successful in its Federal Court prosecution of a group of Perth based air-conditioning businesses which, the competition regulator alleged, formed a cartel that engaged in price fixing and rigging competitive tenders.
The judge found that the group used a weekly industry association meeting to discuss upcoming tenders and then decided which party would submit the “winning” bid. The other tenderers would then be told the price at which they were to submit bids. The ACCC alleged that $129 million worth of tenders were affected between 1992 and 2003.
A total of $9.2 million in penalties were awarded against 11 companies and 18 company directors and senior executives.
This case serves as a timely reminder that a failure to comply with the Trade Practices Act 1974 (Cth) can result in substantial penalties being awarded against non compliant companies and their individual directors.
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