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Major Australian manufacturer BlueScope Steel has been fined a record $57.5 million for attempting to fix prices by setting up a cartel with its competitors.
The fine comes after the Federal Court found in December last year that the company and its former general manager, Jason Ellis, tried to "induce" eight other Australian distributors and one overseas manufacturer into agreements to fix or raise prices for flat steel products between 2013 and 2014.
In addition to the fine for BlueScope, Ellis was ordered to pay a $575,000 penalty.
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He had previously pleaded guilty to and been convicted of two counts of inciting the obstruction of a Commonwealth official but was immediately released from his eight-month jail sentence on a good behaviour bond.
The Australian Competition and Consumer Commission (ACCC), which brought the civil proceedings against BlueScope and Ellis in 2019, welcomed the fines.
"This should serve as a strong warning to all businesses and individuals that attempting to fix prices with competitors will have very serious consequences, even if the attempt fails and they do not reach an agreement," ACCC Liza Carver said.
"We welcome this substantial penalty against BlueScope.
"It is important that penalties are sufficiently large to deter even large companies and their employees from breaching Australia's competition laws.
"Cartel conduct is illegal because it cheats Australians by increasing the prices consumers and business customers have to pay, and by restricting healthy economic growth.
"If BlueScope had been successful in reaching an agreement to fix prices with its competitors, this would have reduced price competition and increased prices for flat steel products which are widely used in the construction, manufacturing, automotive and transport industries."
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In handing down the fines, Justice Michael O'Bryan said the penalty for such deliberate and systematic conduct had to be substantial.
"The conduct in the present case warrants a significant penalty to deter repetition by Mr Ellis and by others who may otherwise calculate that the rewards from such conduct outweigh the risks of detection," he said.
In a statement, BlueScope acknowledged the penalty and indicated it may be considering an appeal.
"Penalty orders were made today by the Federal Court in respect of the civil proceedings brought by the ACCC against BlueScope and one of its former employees," it said.
"The total penalty ordered against BlueScope was $57.5 million.
"BlueScope has 28 days to file any Notice of Appeal, should it decide to do so."
BlueScope and Ellis were ordered to pay the ACCC's costs.
