Australian competition watchdog sues Downer, Ventia units for price fixing (updated)

Ventia Services

11/12/2024 23:48

(Adds details on price fixing, ACCC chair comment in paragraphs
2-5, Downer and Ventia response in paragraphs 8-10)
       Dec 12 (Reuters) - Australia's competition regulator
said on Thursday it had started civil proceedings against units
of Downer EDI  DOW.AX  and Ventia Services  VNT.AX  for alleged
price fixing for services at the Department of Defence bases.
    The Australian Competition & Consumer Commission (ACCC)
alleged that between April 2019 and August 2022, Ventia
Australia and Spotless Facility Services made or attempted to
make arrangements to control the prices for estate maintenance
and operation services supplied to the defence department.   
    Price fixing is a type of cartel conduct that involves
competitors agreeing on pricing instead of competing against
each other, according to the ACCC.
    "The allegations in this case relate to alleged conduct by
two large, sophisticated companies providing services which are
critical to the operation of Australian Defence facilities under
longstanding, publicly funded Defence procurement contracts,"
the ACCC Chair Gina Cass-Gottlieb said.
    "We allege this conduct caused direct harm to the
Commonwealth and ultimately Australian taxpayers," she added.
    Ventia and Spotless provide services under separate
billion-dollar contracts to over 200 major Australian Defence
Force (ADF) bases. Their current contracts are due to expire
around mid-2025.
    The ACCC is seeking declarations and civil penalties related
to the conduct.
    In a separate statement, Downer said it would defend the
proceedings. 
    "Downer is of the view that neither Spotless nor the two
Spotless employees referred to by the ACCC engaged in unlawful
conduct," it added.
    Meanwhile, Ventia said it was reviewing the details of the
allegations. 

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Alan
Barona)
 ((Himanshi.Akhand@thomsonreuters.com))