One of Australia's largest companies tried to fix pricing agreements with its competitors to illegally boost the price of flat steel, the Federal Court has found.
BlueScope and its former general manager Jason Ellis were found by the court to have engaged in the illegal behaviour after the consumer watchdog launched civil cartel proceedings against it.
The court found between September 2013 and June 2014, BlueScope and Mr Ellis tried to induce eight Australian steel distributors and an overseas manufacturer to agree to fix or raise the level of pricing for flat steel products.
Australian Competition and Consumer Commissioner Liza Carver said if the agreements had gone ahead, they would have reduced competition and increased prices for flat steel products used widely in Australia.
"Cartels not only disadvantage other businesses which are competing lawfully, but can also lead to consumers paying higher prices," she said.
"This is an important decision which has the potential to strengthen the ACCC's position in future cases of attempted cartel conduct."
The watchdog commissioner warned other businesses and individuals that even attempting to reach a price fixing arrangement with one or more competitors could have serious consequences.
"Corporations and individuals involved in cartel conduct may face either ACCC civil enforcement action or potential criminal charges brought by the Commonwealth Director of Public Prosecutions," she said.
BlueScope will face a penalty hearing next April and the watchdog is also seeking for Mr Ellis to be disqualified from managing corporations for a time to be determined by the court.
Mr Ellis was convicted and sentenced in December 2020 for inciting the obstruction of an ACCC investigation after he encouraged two other BlueScope employees to give false information and evidence to the watchdog during its investigation of the cartel conduct.
