The Federal Court has ordered an overhead crane company pay $1 million for singing a cartel agreement with a rival firm in their Newcastle and Queensland markets.
The Australian Competition and Consumer Commission (ACCC) commenced civil proceedings back in October 2020 alleging NQ Cranes engaged in cartel conduct signing an agreement with a competitor back in 2016 – cartel conduct is when businesses agree to act together instead of competing with one another in the market.
If companies do engage in it, they are breaking the Competition and Consumer Act.
“This explicit written agreement to share the market was clearly anti-competitive and had the potential to limit the service options available to the many businesses that use overhead cranes,” ACCC Commissioner Liza Carver said.
“Businesses are reminded that the ACCC will investigate and take appropriate enforcement action not just against large corporates or multi-nationals. We will carefully examine any allegation of attempts to interfere with free competition by engaging in cartel conduct, and we encourage businesses which have concerns about activities in their markets to contact us confidentially.
“All businesses should be aware of their obligations under the Competition and Consumer Act, and be proactive in ensuring compliance with the law,” Liza Carver said.
So, NQ Cranes admitted they had and have been fined $1 million and will also have to pay part of the ACCC’s costs and establish and implement compliance program.
NQ Cranes is a privately owned overhead crane company which designs, services and manufactures cranes.