Australian Competition & Consumer Commission v Tubemakers of Australia Ltd [1999] FCA 1787

Australian Competition & Consumer Commission v Tubemakers of Australia Ltd [1999] FCA 1787

The admitted price fixing, market sharing and tender rigging were serious contraventions, but the agreed penalties and orders were appropriate because the relevant respondents fully cooperated in revealing the contraventions, took remedial action, admitted the conduct, and the individual respondents had shown contrition and suffered employment and financial consequences. The Court therefore imposed pecuniary penalties on the first and second respondents, made injunctive and costs orders against the first, second and fifth respondents, and made no further pecuniary penalty order against the fifth or seventh respondents.

Jurisdiction
Australia
Judgment Date
12 November 1999
Procedural Posture
Application for Pecuniary Penalties Under S 76 of the Trade Practices Act 1974 (cth) and Injunctive Relief for Contraventions of S 45 / Ex Tempore Reasons for Judgment on Agreed Proposed Penalties and Injunctive Relief; Orders Made on 12 November 1999
Outcome
Orders made imposing pecuniary penalties, injunctions and costs; no pecuniary penalty imposed on the fifth and seventh respondents and no additional orders made against the seventh respondent beyond orders made on 4 October 1999.
Legal Topics
['price Fixing' 'market Sharing' 'tender Rigging' 'pecuniary Penalties' 'injunctive Relief' 'agreed Penalties and Orders']
['competition Law' 'trade Practices'] ['price Fixing' 'market Sharing' 'tender Rigging' 'pecuniary Penalties' 'injunctive Relief' 'agreed Penalties and Orders']

Case Brief

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Procedural Posture

Application for Pecuniary Penalties Under S 76 of the Trade Practices Act 1974 (cth) and Injunctive Relief for Contraventions of S 45 / Ex Tempore Reasons for Judgment on Agreed Proposed Penalties and Injunctive Relief; Orders Made on 12 November 1999

Legal Issues

  1. 1 ['Whether the agreed pecuniary penalties for the first and second respondents were appropriate for admitted contraventions of s 45 of the Trade Practices Act 1974 (Cth)' 'Whether injunctive relief and costs orders were appropriate against the first, second and fifth respondents' 'Whether pecuniary penalties should be imposed on the fifth and seventh respondents despite their admitted involvement']

Ratio Decidendi

The admitted price fixing, market sharing and tender rigging were serious contraventions, but the agreed penalties and orders were appropriate because the relevant respondents fully cooperated in revealing the contraventions, took remedial action, admitted the conduct, and the individual respondents had shown contrition and suffered employment and financial consequences. The Court therefore imposed pecuniary penalties on the first and second respondents, made injunctive and costs orders against the first, second and fifth respondents, and made no further pecuniary penalty order against the fifth or seventh respondents.

Court Disposition

Orders made imposing pecuniary penalties, injunctions and costs; no pecuniary penalty imposed on the fifth and seventh respondents and no additional orders made against the seventh respondent beyond orders made on 4 October 1999.

Orders

  • ['The first respondent shall pay to the Commonwealth on or by 3 December 1999 a pecuniary penalty of $1,200,000.' 'The second respondent shall pay to the Commonwealth on or by 3 December 1999 a pecuniary penalty of $550,000.' 'The pecuniary penalties are in respect of contraventions of ss 45(2)(a)(i), 45(2)(a)(ii),...