From fellow ABC business reporter Dan Ziffer, who listened to the case this morning.
The competition watchdog has won a fight against Australia’s largest steelmaker, BlueScope, to fix and inflate prices.
Federal Court Judge O’Bryan ruled in favor of the Australian Competition and Consumer Commission (ACCC), which had brought a civil action against BlueScope Steel Limited (BlueScope) and its former chief sales officer and marketing, Mr. Jason Ellis, for alleged “collusive conduct” in relation to the supply of flat steel products.
It’s been a decade since the crimes. The ACCC alleged that between September 2013 and June 2014, BlueScope and Mr Ellis attempted to induce various steel distributors in Australia and overseas manufacturers to enter into agreements containing a price-fixing clause.
These incentives would have fixed or increased the cost of flat steel products in Australia.
Flat steel is a critical material for builders, fabricators and the automotive industry, so rising costs have been borne by millions of consumers.
ACCC Commissioner Liza Carver pointed to the potentially wide-ranging nature of the tribunal’s outcome.
“This is an important decision that has the potential to strengthen the ACCC’s position in future cartel cases.
“Cartels not only disadvantage other businesses that compete legally, but can also lead consumers to pay higher prices.”
The ACCC is calling for a series of penalties, including a monetary penalty – a fine intended to punish the recipient. He also wants Mr. Ellis disqualified for his ability to run businesses.
A penalty hearing is scheduled for April 3, 2023.
BlueScope said it was “disappointed” with the court’s decision and would review the reasons and determine if there were grounds for appeal.