The Australian Competition and Consumer Commission (ACCC) has instituted civil proceedings in the Federal Court over an alleged attempted cartel for a National Gallery of Australia (NGA) tender.
Chair of the ACCC, Rod Sims said the ACCC instituted proceedings against a company and its director, for involvement in an alleged attempt to rig a bid in connection with the NGA tender.
Mr Sims said NGA was not involved in, or aware of, the alleged conduct at the time and did not suffer any loss.
“The alleged attempted cartel conduct occurred in late 2019, and relates to a tender for the replacement and ongoing maintenance of a building management system at the National Gallery,” Mr Sims said.
He said the ACCC alleges that the director acting on behalf of the company, attempted to make, or attempted to induce the making of, an arrangement or understanding with a competitor to engage in bid rigging.
“The alleged cartel behaviour, involving an attempt to bid rig with a competitor in respect of bids for the tender of a Government institution like the National Gallery of Australia, is of particular concern as it had the potential to impact the cost to taxpayers.”
Mr Sims said the proposed arrangement was not made, which the ACCC alleges was because the competitor rejected the approach.
He said it was illegal for any corporation to make or attempt to make cartel arrangements with competitors, which involve businesses agreeing to act together instead of competing fairly.
“Cartel arrangements usually drive-up prices to the detriment of consumers or other businesses and organisations, and are strictly prohibited,” he said.
Mr Sims said the ACCC was seeking declarations, pecuniary penalties, injunctions and costs, as well as an order disqualifying the director from managing a company, and orders for compliance training.
