Bingo Industries cartel $30m fine is country's second largest
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More news: Bing Industries' combined $30 million fine is the second largest criminal cartel penalty under Australian competition law, the country's antitrust regulator has pointed out.
What they said: In a statement responding to Friday's sentences in the Bingo Industries and Aussie Skips criminal cartel cases, Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said the sentences are a strong reminder that cartel conduct can lead to criminal convictions and potential imprisonment for individuals.
“Cartel conduct is illegal because it increases the prices consumers and businesses have to pay, and restricts healthy competition and economic growth,” Cass-Gottlieb said.
Cass-Gottlieb added that the regulator will continue to investigate cartel conduct and encouraged anyone who observes anti-competitive conduct in their industry or workplace to contact the regulator confidentially.
Bingo Industries is a 'materially different company' now: CEO
What they said: Bingo Industries' chief executive officer, Chris Jeffrey, has said the company is "materially different" since the matter occurred in 2019.
“We’ve got a new owner, a new board, a new chair and a new executive team,” he said.
“Since the matter occurred close to five years ago, we’ve significantly improved our focus on governance and compliance," he added.
The company outlined in a media release today following the court decision that it has new measures in place, including how the company deals with competitors, price changes and regular competition-law training for all sales staff.
“We’re pleased to put this matter behind us. Our focus remains on achieving our vision of a waste-free Australia and assisting in the transition to a circular economy," Jeffrey said.
Bingo Industries, Aussie Skips face multi-million dollar cartel fines
The news: Bingo Industries, Aussie Skips, and the companies' former bosses have been handed multi-million dollar fines and prison sentences for their 2019 price-fixing agreements linked to waste-management services.
The numbers: Today, Federal Court of Australia Judge Michael Wigney imposed a $30 million aggregate fine on Bingo Industries and handed former CEO Daniel Tartak a two-year imprisonment sentence along with two $50,000 fines.
Tartak has also been banned from managing any company for five years, and will serve out the sentence through an intensive correction order, a custodial sentence served in the community, plus 400 hours in community service.
Aussie Skips faces a $1.75 million fine for its Aussie Skips business and a $1.75 million fine for Aussie Recycling. Aussie Skips' lower penalty was based on the companies' relationships and the relationship of their respective conduct.
The company's former boss, Emmanuel Roussakis, faces an 18 month imprisonment sentence to be served by an intensive correction order in the community, plus 300 hours community service and a $75,000 fine. He also faces a five-year ban from managing a company.
The context: The companies as well as Tartak and Roussakis were alleged to have agreed in mid-2019 to fix prices for the supply of skip bins and processing services for building and demolition waste in Sydney.
Tartak and Roussakis met in a cafe at Tartak's request in 2019 before exchanging a series of WhatsApp messages to set up the price-fixing agreement, which ran for a number of months that year.
The essence of the arrangement for waste collection was that Bingo would maintain a price increase of 25% other than for top tier customers where the increase would be 22%. Aussie Skips increased its prices by 20%.
On waste processing, Bingo would maintain a price increase of $60 per ton and $35 dollar per cubic metre at facilities in Strathfield South in Sydney.
The companies entered the agreement following a Queensland waste levy, which came into effect in July 2019 and had increased waste-management costs.
Despite the levy, Wigney said the cartel conduct had led to market price increases for Bingo and Aussie Skips customers.
What they said: Wigney said the conduct involved serious criminality and led to the suppression and distortion of pricing competition in the Sydney metropolitan region.
Wigney added that the markets for building demolition waste collection and processing were “large and lucrative,” with Bingo and Aussie Skips as the combined operator of Aussie Skips and Aussie Recycling the top two market players at the time.
The sources: Federal Court of Australia, ACCC, Bingo Industries
