Cartel conduct draws wave of civil, criminal court proceedings in Australia
MLex Market Insight
MLex Market Insight
4.9 • 9 Ratings
🗓️ 2 September 2019
⏱️ 15 minutes
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| 0:00.0 | Hello and welcome to this MLEX podcast. I'm Laurel Henning, senior correspondent based in Sydney, Australia. |
| 0:17.2 | And today we're looking at a recent increase in court action here in Australia over cartel conduct, both in criminal and civil cases. |
| 0:24.6 | Just in the last fortnight, the Australian Competition and Consumer Commission, or ACCC, added two more cases to its hit list. |
| 0:31.6 | One against Norwegian shipping line, Wallaneous Wilhelmson Ocean, or WWO, and a second against an Australian |
| 0:39.1 | company, Blue Scope Steel. The first one of those was a criminal prosecution, the second, |
| 0:44.5 | a civil matter, at least for now. I've been following the recent developments with my colleague |
| 0:49.3 | James Panicki, Emlex's Australasian managing editor, who joins me now from Melbourne. Hello, James. |
| 0:55.0 | Hello, Laurel. |
| 0:56.0 | We'll talk about WWO in just a moment, but first, Blue Scope, an Australian steel company and its former |
| 1:02.0 | manager of general sales and marketing, Jason Ellis, are facing civil proceedings over allegations |
| 1:07.0 | of price fixing for flat steel products. James, what do we need to know? |
| 1:11.9 | Okay, look, we need to know that there's been a flurry of activity on the part of the ACC |
| 1:16.5 | in recent, over the recent year or so, particularly in the case of criminal cartel prosecutions. |
| 1:23.5 | And there's been a flurry of activity, needless to say, on the part of Australia's federal prosecutor, |
| 1:28.5 | which is responsible for bringing this kind of court action. In the case of the case of Blue Scope |
| 1:34.9 | is really just the latest. We covered this late last week, and it is, as you mentioned, a civil case, |
| 1:40.4 | not a criminal prosecution, but it's also a bit of an unusual case. Now, the |
| 1:46.0 | allegations are that the company had attempted to induce various steel distributors in Australia, |
| 1:52.1 | as well as foreign manufacturers, to enter into what the ACCC has very carefully described as |
| 1:59.3 | agreements containing a price-fixing provision for flat steel products. |
| 2:04.0 | So in other words, the allegation isn't that the company had successfully established a cartel, |
| 2:08.5 | but that it had made attempts to do so. Yes, that's right. And the company made that point very |
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