Bid rigging and price fixing drive up prices for businesses and harms the economy
The ACCC has launched Federal Court proceedings against technology company Swift Networks Pty Ltd (Swift) for alleged bid rigging and price fixing when tendering to supply equipment and services to five Pilbara mining village sites.
The ACCC alleges that on five occasions in 2019, Swift made an agreement with a competitor, DXC Connect Pty Ltd and DXC Technology Australia Pty Ltd (together DXC), to rig bids and fix prices for the supply of technology infrastructure at mining camps in WA’s Pilbara region.
Technology infrastructure includes IT, communications, and audio-visual entertainment infrastructure and associated services for providing internet and media services such as free-to-air or subscription television to mining villages.
The tenders were for projects located at Rio Tinto Limited’s Gudai-Darri, West Angelas and Yandicoogina, Western Turner Syncline, and Peninsula Palms sites, and at Fortescue Metals Group Limited’s Japal Village Iron Bridge site. For these five projects, it is alleged Swift and DXC agreed that one of them would submit a higher price than the other in response to a request for bids.
Since late 2017, Swift and DXC sometimes engaged each other as sub-contractors for projects involving the supply of Technology Instructure to mining sites in the Pilbara. However, in the case of the five projects, the ACCC alleges Swift and DXC acted beyond the scope of any sub-contracting relationship.
“Bid rigging and price fixing drive up prices for businesses and harms the economy, which is why cartel conduct is a serious breach of our competition laws,” ACCC Commissioner Liza Carver said.
“This case is a reminder to all businesses, large or small, that they must exercise caution when they are dealing with competitors to ensure that these discussions do not lead to anti-competitive arrangements, including cartel conduct.”
The ACCC is seeking declarations, penalties, costs, and other orders.
Tags: ACCCDXC TechnologySwift
