Price-fixing proceedings instituted against Metro Brick and Midland Brick

The Australian Competition and Consumer Commission has instituted proceedings alleging price fixing by brick manufacturers, Bristile Operations Pty Ltd, trading as Metro Brick, and Midland Brick Company Pty Ltd (trading as Midland Brick) in the Federal Court, Perth.

The ACCC alleges that between September and November 2001 company representatives had a number of meetings and telephone conversations during which they reached price fixing arrangements or understandings concerning bricks supplied to builders in Western Australia.

It is alleged the arrangement contained a provision that the prices for all clay brick products to be supplied by Metro and/or Midland would increase by approximately three per cent for trade builders from in or about October 2001 and for major builders from in or about January 2002.

It is also alleged the companies reached an agreement or understanding that the tender price at which Metro Brick was to supply Verticore and Midland Brick was to supply Maxibrick to major builders would not be below $570 per thousand bricks.

The ACCC is seeking declarations, injunctions, pecuniary penalties, other remedial orders and costs.

A directions hearing has been listed for 11 July 2003 at Perth.