The Federal Court has today ordered Swift Networks Pty Ltd (Swift) to pay a penalty of $1.2 million for engaging in cartel conduct by rigging bids when tendering to supply technology infrastructure and services to three Pilbara mining village projects.
Swift tendered for projects at Rio Tinto Limited’s West Angelas and Yandicoogina sites and its Western Turner Syncline site, and at Fortescue Metals Group Limited’s Japal Village Iron Bridge site.
Swift admitted it had engaged in cartel conduct when in relation to these three projects, it agreed with a competitor, DXC Connect Pty Ltd and DXC Technology Australia Pty Ltd, that one of them would submit a higher price than the other in response to a request for bids.
“Bid rigging is a serious breach of competition laws. Cartel conduct such as this can lead to higher prices for other businesses, and ultimately consumers,” ACCC Commissioner Liza Carver said.
“We have taken this case as a reminder to businesses that we take this type of anti-competitive conduct extremely seriously and will always take appropriate action.”
Swift was also ordered to establish Competition and Consumer Act compliance, education and training programs and pay part of the ACCC's costs.
The orders were made following joint submissions by the parties and the ACCC to the Court.
Background
Technology infrastructure and services include the supply of information technology, communications equipment, entertainment solutions and associated services to provide Wi-Fi and internet connectivity to rooms and communal areas across mining sites.
Swift is a specialist technology company delivering network infrastructure, entertainment and communications to accommodation facilities nationally across mining and resource, residential aged care, hospitality and other “closed loop” environments.
The ACCC commenced proceedings against Swift in February 2023.
Notes to editors
Bid rigging occurs when two or more competitors agree they will not compete genuinely with each other for tenders, allowing one of the cartel members to ‘win’ the tender. Participants in a bid rigging cartel may take turns to be the ‘winner’ by agreeing about the way they submit tenders, including some competitors agreeing not to tender.
More information on bid rigging can be found on the ACCC’s website at Cartels.
The ACCC investigates cartel conduct and may take civil cartel proceedings in the Federal Court. The ACCC may also refer potentially criminal cartel conduct to the Commonwealth Director of Public Prosecutions for consideration of prosecution.
The ACCC works to detect cartels including through education programs, proactive intelligence gathering and data assessment and working with overseas counterparts to identify cartels that operate on a global level.
The ACCC also manages an immunity program that enables past or present cartel members to confess their actions and cooperate with investigations in exchange for immunity from ACCC-initiated civil and (through the CDPP) criminal proceedings.
Anyone with information about cartel conduct is urged to call the ACCC Cartel Hotline on (02) 9230 3894. You can also report cartel conduct anonymously.
Anyone who thinks they may be involved in cartel conduct can also apply for immunity from prosecution in exchange for helping with the ACCC’s investigations by contacting the ACCC.
Public procurement officials who want to know more about detecting cartels are encouraged to contact the ACCC Cartel Outreach team at carteloutreach@accc.gov.au.