Australian cement companies fined AUD18.62m

Australian cement companies fined AUD18.62m
29 April 2016

After the Australian Competition and Consumer Commission (ACCC) brought the proceedings against four Australian cement manufacturers in 2008, the Federal Court has finally ordered the four cement companies pay more than AUD18m (US$13.73m) in penalties for anti-competitive conduct.

Cement Australia Pty Ltd, Cement Australia Queensland Pty Ltd, Pozzolanic Enterprises Pty Ltd, and Pozzolanic Industries Pty Ltd entered into the contracts between 2002 and 2006, and operated in breach of the then Trade Practices Act 1974.

The court in Brisbane found the companies prevented competition in the concrete market when they entered into contracts with power stations in southeast Queensland to acquire fly ash.

No allegations were made against the power stations involved in the contracts, the Millmerran, Tarong, Tarong North and Swanbank stations.

In his judgement, Justice Greenwood found the cement cpmpanies had such a substantial market share, and exercised such a substantial degree of influence on pricing in the local market for concrete grade fly ash, that the impact of new competition in the market would have been significant.

The Federal Court in Brisbane ordered the companies pay a total of AUD18,620,000 in penalties.

Published under Cement News

Tagged Under: Australia Cement Australia