$1.525 million penalties against garnet producers for market sharing arrangement
Barton Mines Corporation and Barton International Inc, two US companies operating in Australia, have been ordered to pay penalties totalling $1.525 million by the Federal Court after they admitted entering into an illegal market sharing arrangement for the supply of alluvial garnet in Australia.
The Federal Court declared that the two companies breached s45 of the Act by entering into an agreement, with another, by which the companies agreed to restrictions in relation to the geographic territories into which each would be permitted to supply alluvial garnet. This type of conduct is commonly described as market sharing.
"This is a significant penalty for a contravention of Part IV of the Trade Practices Act which should serve as a warning to other companies which may try to collude and allocate markets between them", Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, said today.
"Whilst the Barton companies are overseas companies, when they are operating in Australia they are subject to the Act", Mr Samuel said. "The ACCC will apply the cartel provisions of the Act just as vigorously to foreign companies as it will to home grown cartel participants".
In making his orders Justice Tracey of the Federal Court in Melbourne noted that the penalties were appropriate taking into regard that the parties admitted the conduct and cooperated with the ACCC investigation and settlement of the matter.
Justice Tracey also ordered injunctions against Barton Mines Corporation and Barton International Inc preventing them from engaging in similar conduct in contravention of s45 of the Act for two years. He also ordered a contribution to the ACCC's costs of $75,000.
Barton Mines Corporation and Barton International Inc are United States companies involved in the mining and distribution of alluvial garnet, including in Australia. Alluvial garnet is a mineral used as an abrasive in the preparation of surfaces.
