PERTH (miningweekly.com) – The Australian Competition and Consumer Commission (ACCC) has filed civil cartel proceedings in the Federal Court against mining equipment and technology services company Qteq and its executive chairperson Simon Ashton.

The ACCC alleges that on seven instances between 2017 and 2019, Qteq contacted competing businesses working in the supply of services to the oil and gas service industry, in attempts to induce them to enter into cartel arrangements with them.

Specifically, Qteq is alleged to have attempted to enter, or attempted to induce, four other suppliers to enter into, contracts, arrangements or understandings which contained cartel provisions, including provisions to not supply particular services to large oil and gas companies, to share markets and to rig a tender.

The ACCC also alleges that Ashton was involved in attempting to induce competitors to enter into these cartel arrangements on six occasions.

“When businesses seek to allocate particular clients between them or agree not to bid on certain contracts, they distort competition, which can ultimately drive up prices to the detriment of other businesses and the wider economy,” ACCC commissioner Liza Carver said this week.

“Pursuing cartel conduct remains one of our enduring priorities. We carefully consider all allegations of attempted or actual cartel conduct received, including tip-offs from industry insiders and customers, as well as anonymous reports made via our cartel reporting portal.”

“This case is a timely reminder for businesses, no matter what size, to ensure that their directors, senior managers and employees are aware of their obligations under the Competition and Consumer Act not to engage in cartel and other anti-competitive conduct, or they may face serious consequences,” Carver said.

For corporations, the maximum penalty for each cartel offence before November 9, 2022 is the greater of A$10-million, three times the total benefits that have been obtained and are reasonably attributable to the commission of the offence, or if the total value of the benefits cannot be determined, 10% of the corporation’s annual turnover connected with Australia.

An individual found to have been involved in civil cartel conduct before November 9, 2022 is subject to a maximum penalty of A$500 000 for each act or omission. 

Qteq has expressed disappointment in the ACCC's decision to start civil proceedings against the company, saying it had fully cooperated with the watchdog's requests for information throughout its investigative process and was confident it had appropriately followed all rules and regulations.

"It’s important to note the ACCC does not suggest there was any criminality by Qteq or our chairperson. Similarly, no claims have been made that there has been any actual impact on the market or competition. We categorically deny all allegations that have been made and will rigorously contest all claims made by the ACCC," the company said in a statement.

"Noting that this matter is now before the court, Qteq will not be making any further statement. Our focus remains in continuing to safely deliver exceptional products and services to our clients, working closely with our suppliers and providing the best work environment for all our valued employees."