ACCC initiates court case over alleged price fixing in WA mining camps

The Australian Company Regulator has taken legal action over alleged price fixing and bid rigging for entertainment services at the Rio Tinto and Fortescue Metals Group mine sites.

Australia’s Competition and Consumer Commission claimed Swift Networks reached an agreement with competitor DXC five times in 2019 to set pricing for technology infrastructure.

The tenders were for projects at the Gudai-Darri, West Angelas and Yandicoogina, Western Turner Syncline and Peninsula Palms sites in Rio, and the Japal Village Iron Bridge site in Fortescue.

For the five projects ACCC claimed, Swift and DXC agreed that one of them would submit a higher price than the other in response to a request for quotation.

“Bid rigging and price fixing drive up prices for companies and hurt the economy, which is why antitrust behavior is a serious violation of our competition laws,” ACCC Commissioner Liza Carver said in a statement on Friday.

“This case is a reminder to all companies, large and small, that they must exercise caution when dealing with competitors to ensure these discussions do not result in anti-competitive agreements, including anti-trust behavior.”

The Commission seeks explanations, penalties, costs and other orders.