The Australian Competition and Consumer Commission is investigating claims of price-fixing, bid-rigging and exclusionary boycotts in the Australian art market.
"Allegations of such behaviour have been made in today's Australian", ACCC Chairman, Professor Allan Fels, said today. "Specific allegations concern the recent auction of John Glover's Mount Wellington and Hobart Town from Kangaroo Point. This painting was knocked down to National Gallery of Australia for $1.5 million, reportedly the painting's reserve and lowest estimated price.
"From initial discussions, the Trade Practices Act 1974 appears to apply to the buying and selling of art, including where public galleries owned by government buy or sell.
"The ACCC would be highly concerned if the claims made in today's paper are found to be true.
"It will be seeking to determine if the alleged actions amounted to unlawful behaviour.
"If, as claimed, the galleries are 'trying to save the Government money', and they believe their alleged actions are in the public interest, they should have strongly considered seeking authorisation. Such authorisation, in effect immunity from the Act, is available if the public benefit outweighs the detrimental effect of the anti-competitive action. It is determined by the ACCC after a public, transparent process. It is not for individual buyers or sellers to take the law into their own hands by reaching anti-competitive agreements.
"Art markets are as subject to the law as any market. Vendors have the right to get a fair price for their product - in this case art - free from 'understandings' between potential bidders".
MEDIA NOTE: Professor Fels will be available for interview at 1 p.m. at the corner of Alfred and Greville Streets, Prahran, Melbourne.