The Australian Competition and Consumer Commission has instituted court proceedings alleging price fixing and market sharing conduct against ABB Transmission and Distribution Limited, Alstom Australia Limited (formerly GEC Alsthom) and Wilson Transformer Company Pty Ltd in the Federal Court, Melbourne.
ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd are the principal manufacturers and suppliers of power transformers in Australia and New Zealand. Power transformers are used in the transmission of power through the electricity transmission and distribution network and where large amounts of electrical power are required.
The ACCC has alleged that ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd formalised a pre-existing collusive agreement in 1993 to share the demand for power transformers in Australia and New Zealand amongst themselves according to agreed percentages.
The ACCC further alleges that this agreement was put into effect until late 1995 or early 1996 through the allocation of a large number of significant tenders among these companies. The allocation of tenders allegedly occurred during a series of meetings and telephone calls between senior executives of the companies throughout the period. It is alleged that the parties ensured the company allocated a specific tender would win by agreeing that that company would tender the lowest bid.
The ACCC is seeking orders against ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd including declarations, injunctions, findings of fact and costs. The ACCC is also seeking pecuniary penalties against these companies and six senior executives.
The ACCC notes that after being informed of the investigation Wilson Transformer Company Pty Ltd and Alstom Australia Limited have provided the ACCC with a substantial degree of cooperation to date.
A directions hearing has been set down for 29 October 1999.
ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd are the principal manufacturers and suppliers of power transformers in Australia and New Zealand. Power transformers are used in the transmission of power through the electricity transmission and distribution network and where large amounts of electrical power are required.
The ACCC has alleged that ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd formalised a pre-existing collusive agreement in 1993 to share the demand for power transformers in Australia and New Zealand amongst themselves according to agreed percentages.
The ACCC further alleges that this agreement was put into effect until late 1995 or early 1996 through the allocation of a large number of significant tenders among these companies. The allocation of tenders allegedly occurred during a series of meetings and telephone calls between senior executives of the companies throughout the period. It is alleged that the parties ensured the company allocated a specific tender would win by agreeing that that company would tender the lowest bid.
The ACCC is seeking orders against ABB Transmission and Distribution Limited, Alstom Australia Limited and Wilson Transformer Company Pty Ltd including declarations, injunctions, findings of fact and costs. The ACCC is also seeking pecuniary penalties against these companies and six senior executives.
The ACCC notes that after being informed of the investigation Wilson Transformer Company Pty Ltd and Alstom Australia Limited have provided the ACCC with a substantial degree of cooperation to date.
A directions hearing has been set down for 29 October 1999.