The Australian Competition and Consumer Commission has instituted proceedings against American-based company, DRS C3 Systems, for alleged cartel behaviour in the international military defence training systems industry.

The conduct relates to an alleged agreement between DRS and another company that DRS would withdraw from a proposed procurement of an air combat manoeuvring instrumentation (ACMI) system by the Commonwealth of Australia.

The ACCC alleges that this agreement amounted to a market sharing agreement in breach of section 45 of the Trade Practices Act 1974.

The ACCC is seeking various orders including declaration, injunctions, penalties and costs.

A directions hearing has been scheduled for 22 July 2009 at 9:30 a.m. before Justice Edmonds.