Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Australian competition agency charges electric cable suppliers with cartel activity, (Dec 4, 2014)
Organizations Mentioned:Lawrence & Hanson Group Pty Ltd | Olex Australia Pty Ltd | Prysmian Power Cables & Systems Australia Pty Ltd | Rexel Electrical Supplies Pty Ltd, Australian Regional Wholesalers Pty Ltd.
By Edward L. Puzzo, J.D.
The Australian Competition and Consumer Commission (ACCC) has initiated court proceedings against five electrical cable suppliers, their trade association, and six individuals, charging them with engaging in cartel activity and exclusionary conduct, the agency announced today.
Charged were:
Olex Australia Pty Ltd (Olex) and Prysmian Power Cables & Systems Australia Pty Ltd (Prysmian), Australia’s two largest manufacturers of electrical cable;
L&H (which is operated by Lawrence & Hanson Group Pty Ltd) and Rexel (which is operated by Rexel Electrical Supplies Pty Ltd and Australian Regional Wholesalers Pty Ltd), electric wholesalers;
six senior executives from these manufacturing and wholesaling companies, and
the Electrical Wholesalers Association of Australia Limited (EWAA), an industry association.
It is alleged that in 2011, Olex, Prysmian, L&H and Rexel conspired to restrict the supply of electrical cable to contractors and other wholesalers, and to fix prices for their cutting services. The conduct allegedly occurred at EWAA meetings with the knowledge and assistance of EWAA. Prysmian and Rexel are also accused of engaging in bid-rigging related to a refinery.
“This alleged cartel spanned most of the major players in the supply chain for electrical cable, so the potential for harm to customers, such as electricians and commercial contractors, and therefore ultimately businesses and households, was considerable,” ACCC Chairman Rod Sims said. “This case also serves as a warning that the ACCC will act if it suspects an industry association or any other forum is being used as an apparatus for collusion.”
Due to factors such as the fact that the alleged conduct was not clandestine, the ACCC determined that civil rather than criminal action was appropriate in this case. The ACCC is seeking pecuniary penalties, declarations, and costs against the companies and individuals, as well as orders for compliance programs against the companies.
Companies: Olex Australia Pty Ltd; Prysmian Power Cables & Systems Australia Pty Ltd; Lawrence & Hanson Group Pty Ltd; Rexel Electrical Supplies Pty Ltd, Australian Regional Wholesalers Pty Ltd.
News: Antitrust