The Full Federal Court of Australia has upheld a record A$57.5 million penalty against Australian steelmaker BlueScope Steel, confirming the company’s involvement in attempted cartel conduct. The ruling also maintains a A$500,000 fine against the company’s former general manager, Jason Ellis, marking the most severe penalties ever imposed for a competition law breach in Australia.
Background of the case
Between September 2013 and June 2014, BlueScope and Ellis attempted to persuade eight steel distributors in Australia, as well as Taiwanese manufacturer Yieh Phui, to agree on price-fixing arrangements for flat steel products.
The Australian Competition and Consumer Commission (ACCC) alleged that Ellis and other representatives sought to induce competitors into using BlueScope’s pricing information as a benchmark, effectively undermining competition and potentially inflating steel prices across the market.
Court decision
The Full Court dismissed appeals from both BlueScope and Ellis, affirming earlier findings from December 2022 and August 2023. The penalties remain as follows:
- BlueScope Steel: A$57.5 million (record-breaking fine)
- Jason Ellis: A$500,000 fine
ACCC’s Response
ACCC Acting Chair Catriona Lowe welcomed the ruling, emphasizing the importance of cartel enforcement: “This case involved an attempted cartel which, if successful, could have created significant damage across the economy, as well as to customers and other businesses that compete fairly.”
The ACCC reiterated that cartel enforcement remains a priority, warning businesses and executives that even attempted collusion carries substantial legal and financial risks.