The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Adelaide, against a number of participants in the South Australian fire protection industry, alleging that they made, or attempted to make, illegal anti-competitive and price fixing agreements.
The matter is listed for a directions hearing in the Federal Court in Adelaide at 9:15 a.m. tomorrow (Thursday 28 November).
The ACCC alleges that the conduct began in approximately 1992 and continued until at least 1997. It is alleged it generally involved the installation of sprinklers, alarms, and other fire protection systems on major construction projects, both private and public.
The ACCC alleges that a number of companies have breached section 45 of the Trade Practices Act 1974 and that nine individuals, all either current or former directors or employees of companies involved in the industry, were knowingly concerned in or aided and abetted the conduct.
The companies that the ACCC is taking action against are:
- FFE Building Services Ltd
- Tyco Australia Pty Ltd
- Australian Fire Services Pty Ltd (and Australian Fire Services (SA) Pty Ltd)
- On-Line Fire Protection Pty Ltd.
The ACCC investigation began as a result of the Tyco Group discovering through its trade practices compliance and training program that the conduct had occurred and voluntarily approaching the ACCC with information.
The ACCC is seeking injunctions and declarations against all the companies. It is also seeking penalties and costs against FFE Building Services Ltd, Australian Fire Services Pty Ltd (and Australian Fire Services (SA) Pty Ltd) and On-Line Fire Protection Pty Ltd.
The ACCC instituted court proceedings in 1999 alleging similar conduct in Queensland. The Federal Court in the Queensland case imposed total penalties of $14.79 million and made orders for almost $600,000 in costs. That case involved 38 individuals and more than 20 companies in the Queensland fire protection industry. Note in the Queensland proceedings there were no allegations against Australian Fire Services Pty Ltd (or Australian Fire Services (SA) Pty Ltd) or against On-Line Fire Protection Pty Ltd.