Property developer penalised for attempted price fix

Property developer Anglo Estates Pty Ltd attempted to enter into price-fixing and other anti-competitive arrangements with the Shire of Esperance over the sale of land in the shire, in breach of the Trade Practices Act 1974, the Federal Court, Perth has found.

Justice Robert French also declared that Anglo Estates directors, Ken and Ross Williamson, had attempted to induce the Shire to enter into a price-fixing arrangement in contravention of the Act.

The court ordered Anglo Estates to pay pecuniary penalties of $15,000 and Mr Ross Williamson to pay a pecuniary penalty of $5,000. While the Australian Competition and Consumer Commission sought higher penalties against Anglo Estates and its directors, Justice French believed a modest penalty was appropriate. The ACCC is currently considering that aspect of the judgment.

The declarations and penalties follow ACCC action in March 2004 which alleged that Anglo Estates tried to reach an arrangement where the Shire would not sell vacant residential lots in its Flinders Estate development for less than $80,000 per lot when lots first became available, with annual CPI adjustments for subsequent years.

It was also alleged that Anglo Estates attempted to reach an arrangement in which the Shire would not develop and sell until the end of 2010 some vacant residential lots in its Flinders Estate development.

The ACCC did not allege in any way that the Shire had contravened the Act.

By consent the Federal Court declared that Anglo Estates had attempted to contravene the Act and that the Williamsons had attempted to induce the Shire to contravene the Act. By consent the court also restrained Anglo Estates and its directors from engaging in similar conduct for three years and ordered Anglo Estates to pay the ACCC's costs.

"Consumers in any part of Australia, facing important decisions about the purchase of residential land are entitled to expect that land prices are determined by a fair market and not dictated by attempts at anti-competitive conduct", ACCC Chairman, Mr Graeme Samuel, said today.