The Australian Federal Court has found that Australian steel producer BlueScope Steel Limited and its former general manager of sales and marketing, Jason Ellis, engaged in cartel conduct for the supply of flat steel products in Australia. In civil cartel proceedings brought by the Australian Competition and Consumer Commission (ACCC), the court found that BlueScope and Mr. Ellis attempted to convince eight steel distributors in Australia, and overseas manufacturer Yieh Phui, to enter agreements to fix and/or raise the level of pricing for flat steel products supplied in Australia between September 2013 and June 2014.
“If successful, these attempts would have resulted in agreements between competitors which reduced price competition in the Australian flat steel market and increased prices for flat steel products which are widely used in Australia. Cartels not only disadvantage other businesses which are competing lawfully, but can also lead to consumers paying higher prices,” Liza Carver, ACCC Commissioner said.
A hearing on penalties and other orders has been set down for April 3, 2023.
This decision comes after Mr. Ellis was convicted and sentenced in December 2020 for inciting the obstruction of an ACCC investigation, as a result of his conduct encouraging two other BlueScope employees to give false information and evidence to the ACCC during its investigation of the cartel conduct.
BlueScope Steel produces a range of products such as steel slab, plate, hot and cold rolled coil, coated and painted strip products for building and construction, white goods and manufacturing applications. The company had posted a net profit of A$2.81 billion ($1.97 billion) for the financial year 2021-22 ended on June 30 and was expecting underlying EBIT to be in the range of A$800-900 million in the first half of the financial year 2022-23.