Bingo was fined $30 million and Aussie Skips was fined $3.5 million after the companies pleaded guilty to fixing. Photo: Bingo Facebook.
The Federal Court has convicted and sentenced two waste management companies for criminal cartel offences under the Competition and Consumer Act after they were accused of price-fixing arrangements for demolition waste services in Sydney.
The prosecutions against the two companies – Bingo Industries and Aussie Skips – were brought by the Commonwealth Director of Public Prosecutions (CDPP) following an investigation and referral by the ACCC.
The cartel operated between May 2019 and August 2019, with Bingo and Aussie Skips agreeing to fix prices for their waste collection services and waste processing services in Sydney from 1 July 2019.
Bingo was fined $30 million and Aussie Skips was fined $3.5 million after the companies pleaded guilty to fixing and increasing prices in collusion with the other for the supply of skip bins and waste processing services for building and demolition waste in Sydney.
Bingo’s fine of $30 million is the second largest fine imposed for criminal cartel offences under the Competition and Consumer Act.
Aussie Skips Bingo’s former managing director and CEO Daniel Tartak and Aussie Skips’ former CEO Emmanuel Roussakis were also convicted and sentenced.
Mr Tartak was sentenced for two criminal cartel offences with terms of imprisonment of 18 months each to be served concurrently as an intensive correction order, including 400 hours of community service.
Mr Roussakis was sentenced to 18 months’ imprisonment for one criminal cartel offence, also to be served as an intensive correction order, including 300 hours of community service.
Mr Tartak was also fined $100,000 and banned from managing corporations for five years, while Mr Roussakis was fined $75,000 and banned from managing corporations for five years.
In delivering judgment, Justice Michael Wigney said cartels are widely condemned as the most egregious forms of anti-competitive behaviour.
“At its heart, a cartel is an agreement between competitors not to compete,” he said.
“Cartel conduct harms consumers, businesses and the economy, and is likely to increase prices, reduce choice and distort innovation processes.”
ACCC Chair Gina Cass-Gottlieb said, “The sentences handed down today should serve as a strong reminder that criminal cartel conduct is a serious offence attracting serious consequences, including criminal convictions, significant fines, banning orders, and potential imprisonment for individuals.
“Cartel conduct is illegal because it increases the prices consumers and businesses have to pay and restricts healthy competition and economic growth.”
“We will continue to investigate cartel conduct and refer appropriate matters to the Commonwealth Director of Public Prosecutions for consideration of criminal prosecution,” Ms Cass-Gottlieb said.
“We encourage anyone who observes anti-competitive conduct in their industry or workplace to contact the ACCC confidentially. We will review their concerns and take action if warranted.
“We have special arrangements for anyone who wants to anonymously report cartel conduct via a secure third party platform that protects their identity and by anonymously calling our dedicated hotline,” Ms Cass-Gottlieb said.
Original Article published by Andrew McLaughlin on Riotact.
