Australia’s leading steel manufacturer, BlueScope Steel (BSL), has been hit with a $57.5 million penalty for attempted price-fixing.
It marks the highest penalty ever imposed for cartel conduct in the country.
In December 2022, the Federal Court found BlueScope had attempted to manipulate the prices of flat steel products in Australia. The company’s efforts targeted eight local distributors and an overseas manufacturer, Yieh Phui.
The court’s message was clear: such actions would not be tolerated, and insurance would not come to the rescue, underscoring the seriousness of the offence committed by the popular Colorbond company.
The penalty was accompanied by a $575,000 fine for BlueScope’s former General Manager, Jason Ellis.
Justice O’Bryan, the presiding judge, emphasised the importance of the penalty in deterring future attempts at price-fixing.
He stressed that such actions if left unchecked, could undermine healthy economic growth and increase costs for consumers and businesses alike.
“It is important that penalties are sufficiently large to deter even large companies and their employees from breaching Australia’s competition laws,” ACCC Commissioner Liza Carver said.
“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.”
BlueScope’s attempts to fix prices in the flat steel product market were considered deliberate, systematic, and carried out at a senior level within the company.
The company’s actions, if successful, would’ve affected crucial sectors of the Australian economy, including construction, manufacturing, automotive, and transport industries, where flat steel products are essential.
“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,” Ms Carver said.