ACCC institutes against garnet firms over alleged market sharing agreement

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Melbourne, against three companies for alleged market sharing conduct in relation to the distribution and supply of alluvial garnet in Australia and overseas.

Barton Mines Corporation and Barton International Inc are United States companies involved in the mining and distribution of alluvial garnet, including in Australia. Barton International (Australia) Pty Ltd is an Australian subsidiary of the companies. Alluvial garnet is a mineral used as an abrasive in the preparation of surfaces.

The ACCC alleges that two of the companies breached s45 of the Trade Practices Act 1974 by entering into an agreement, with another, which involved the companies agreeing who would supply alluvial garnet to certain areas in Australia and elsewhere.

It is further alleged that two of the companies gave effect to the agreement by informing distributors of the agreement and referring customers where they fell into the others allocated territory.

The ACCC is seeking declarations and orders including injunctions, pecuniary penalties, findings of fact, trade practice compliance programs and costs against the companies.

A directions hearing has been set down at 10.15 a.m. for 8 April 2005 before Justice Gray in the Federal Court, Melbourne.