ACCC says $57.5m Bluescope fine is a 'strong warning'
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What they said: "This should serve as a strong warning to all businesses and individuals that attempting to fix prices with competitors will have very serious consequences, even if the attempt fails and they do not reach an agreement," ACCC Commissioner Liza Carver said.
"If BlueScope had been successful in reaching an agreement to fix prices with its competitors, this would have reduced price competition and increased prices for flat steel products which are widely used in the construction, manufacturing, automotive and transport industries."
Bluescope hit with $57.5 million penalty
The news: The Federal Court has imposed a penalty on Australia’s biggest steel maker BlueScope in relation to a price-fixing case brought against it by the competition regulator.
The numbers: The court imposed a total penalty of $57.5 million against BlueScope, after it found the company and a former employee tried to induce eight steel distributors and an overseas manufacturer to fix or raise prices for flat steel products supplied in Australia between September 2013 and June 2014.
The context: The Australian Competition and Consumer Commission’s allegations in the civil case were proven in a long trial in late 2021. The court found BlueScope and its former general manager of sales and marketing, Jason Ellis, attempted to engage in cartel conduct and price-fixing. Had the strategy been successful, it would have increased prices for flat steel products used widely across Australia. The court outlined penalty orders in the case on Tuesday.
The source: ASX announcement
