Federal Court dismisses BlueScope appeals over $57.5m civil penalty
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The news: The Federal Court has today dismissed appeals by the country's largest steelmaker BlueScope and its former general manager Jason Ellis over previous Federal Court decisions in a civil cartel proceeding brought by the competition regulator.
The numbers: The court upheld earlier findings that between September 2013 and June 2014, BlueScope and Ellis attempted to induce eight steel distributors in Australia, and overseas manufacturer Yieh Phui, to enter agreements to fix and raise the level of pricing for flat steel products supplied in Australia.
The decision today means the highest penalty ordered for a competition law breach of $57.5 million penalty against BlueScope, and a penalty of $500,000 against Ellis, remain in place.
BlueScope, which said it accepts the court's latest decision, saw its shares lift 0.7% to $23.11 at 12:25pm AEST.
The context: The Australian Competition and Consumer Commission (ACCC) had alleged, and the court had found, that the cartel conduct involved separate attempts by Ellis and other BlueScope representatives, on behalf of BlueScope, to induce agreements containing a cartel provision, with eight competitors.
It also found that Ellis, on behalf of BlueScope, approached several competitors and attempted to induce them to agree to enter into a contract, arrangement or understanding containing a cartel provision whereby distributors would use BlueScope’s pricing information as a benchmark when pricing their flat steel products to their customers.
What they said: “We are pleased that today’s Full Court decision has endorsed the findings made by the Court, and the penalties imposed,” said ACCC acting chair Catriona Lowe.
“This case involved an attempted cartel which, if successful, could have created significant damage across the economy, as well as to customers and other businesses that compete fairly.”
