WA: Fed Court rules on WA air conditioning cartel case

AAP General News (Australia)
04-21-2010
WA: Fed Court rules on WA air conditioning cartel case

PERTH, April 21 AAP - The largest trade practices case ever run in Western Australia
has ended with nearly $9.3 million in penalties handed out to members of an air conditioning
cartel.

The Federal Court in Perth has handed down its final orders in the case which involved
bid-rigging and price fixing on commercial and industrial air conditioning projects valued
at more than $100 million.

The Australian Competition and Consumer Commission (ACCC) began proceedings in December
2004 against 17 companies and 22 individuals and imposed penalties totalling $9,272,000.

The matter came to the ACCC's attention after a trade practice law compliance review
of Tyco and its subsidiaries, following its involvement in a Queensland fire protection
price-fixing case.

The ACCC alleged the Tyco companies breached the Trade Practices Act 1974 by entering
into arrangements or understandings for a company to submit the lowest tender price for
a project.

Price fixing and bid rigging from the early 1990s to 2003 affected tenders for air
conditioning projects totalling about $129 million, the ACCC said in a statement on Wednesday.

"The ACCC is pleased these proceedings have been concluded," chairman Graeme Samuel said.

"This is a timely reminder to businesses who may be tempted to engage in illegal cartel
conduct that the ACCC will not hesitate to investigate and prosecute those involved in
such conduct.

"Furthermore, given recent amendments to the law, individuals who are involved in serious
cartel conduct of the type subject to these proceedings now face the prospect of criminal
prosecution and the risk of imprisonment for up to 10 years."

To finalise the case, the Federal Court handed down orders, including declarations,
injunctions and costs, on Martin Roche, a former senior employee of Haden Engineering
Pty Ltd.

The allegations against all the respondents, including Mr Roche, were resolved by consent
between the parties.

AAP ldj/maur/mn

KEYWORD: CARTEL

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