Record $57.5m cartel penalty upheld as cartel enforcement increases

Michael Corrigan, Hamid Pourahmary and Darcy Bradley
11 Sep 2025
3 minutes

The ACCC has had two notable wins in its program of cartels enforcement, with the Full Federal Court dismissing two separate appeals from BlueScope Steel and Delta Building Automation – and in the Bluescope matter, confirming a record fine for BlueScope of $57.5m.

Hot on the heels of these wins, the ACCC has commenced two new proceedings for alleged cartel behaviour. What sort of behaviour is attracting its attention, and where are the danger areas for your business?

Record penalty against BlueScope Steel upheld

On 29 August 2025, the Full Federal Court upheld a record $57.5 million penalty against BlueScope Steel Limited for engaging in cartel conduct. Originally issued in August 2023, this penalty remains the largest ever imposed in an ACCC cartel case. BlueScope's former general manager of sales and marketing, Jason Ellis, was also personally fined $575,000 for his role in the conduct.

The ACCC alleged that between September 2013 and June 2014, BlueScope and Mr Ellis, attempted to induce several competitors and an overseas manufacturer to reach a consensus as to what prices they should charge for flat steel products by sharing with each of them a price list.

A key point of BlueScope's appeal was that the price list was no more than an intention at a benchmarking strategy and that they never asked anyone to commit to the listed prices.

The Court rejected BlueScope's argument stating that by talking to all competitors about the price list, it was clear that they were trying to reach a consensus as to what prices to charge. Seeking a commitment back from the competitors was not necessary. Rather, the mere fact these conversations occurred was enough to determine that BlueScope was attempting to induce an understanding to fix prices.

Acting Chair Catriona Lowe reiterated the ACCC’s commitment to enforcement during the ACCC's media release, stating:

“Enforcing cartel laws is an ongoing priority for the ACCC. Any business or individual that attempts to enter collusive agreements with competitors risks significant penalties, even if attempts to collude and breach competition laws do not come to fruition.”

Delta Building Automation appeal fails

In a separate ruling delivered on the same day, the Full Federal Court dismissed an appeal by Delta and its former general manager, Timothy Davis, against an earlier finding that they attempted to rig a tender at the National Gallery of Australia. Delta and Mr Davis were fined $1.5 million and $120,000, respectively.

The Federal Court had previously found that Mr Davis met with a competitor on 18 December 2019 at a café and offered him money, saying words to the following effect:

"Look mate, I know you’ve had a long association with the gallery. To appease you, I would like to offer you a payment so that you are not wasting your time. The tender is going to be released early in the New Year. There will only be two tenderers and I am confident to win even from second place."

The attempt was ultimately unsuccessful because the competitor rejected the offer.

On appeal, Delta argued that, in offering payment, Mr Davis was not trying to control the outcome of the tender process nor say that the competitor should not bid. It also argued that Mr Davis did not specify the ways in which the bid could be rigged instead he simply offered money.

In dismissing the appeal, the Court upheld the primary judge's finding that the "statement of confidence" from Mr Davis was intended to undermine the competitor's belief that they could win the tender and therefore make him more prone to accepting the payment.

ACCC starts two fresh cartel proceedings as investigations into alleged cartel behaviour increase

After a few months of no announcements in this area, the ACCC has also started two separate civil proceedings in the Federal Court for alleged cartel activity.

ALDI suppliers: on 1 September 2025, against four suppliers and three senior executives for alleged price fixing while supplying fresh vegetables to ALDI, in breach of cartel laws. The ACCC alleges that the vegetable suppliers engaged in 28 instances of making or attempting to make arrangements to fix prices and on 48 occasions, submitted prices to ALDI in accordance with these arrangements.

Crane hire: on 3 September 2025, against four mobile crane hire companies and four senior executives, for allegedly arranging not to supply services to certain customers or sites (ie, limiting output). The ACCC alleges the four companies used WhatsApp to identify certain building sites or customers and made arrangements between themselves that some or all of these companies would not supply cranes to these sites or customers. The ACCC is also alleging that two of the companies attempted to fix prices.

Avoiding cartel behaviour

These proceedings highlight the ACCC’s continued focus in detecting and investigating cartel conduct and enforcing cartel laws.

Cartel conduct is at the top of the ACCC's enduring priorities and serious breaches of cartel laws can amount to severe penalties (as is the case with BlueScope) and may be subject to criminal prosecution. The key points to take away from these cases are:

  • Both Bluescope and Delta engaged in activity that no doubt appeared subtle to the employees involved. Nonetheless, the Federal Court found their conduct to breach the cartel laws.

  • Cartel conduct is a "per se" prohibition under Australian competition law. This means that it is illegal regardless of its actual effect on competition. This includes any attempt at cartel conduct, regardless of whether such attempt is never implemented or is rejected by competitors.

  • Cartel conduct carries significant penalties, including the possibility of criminal prosecution. The record $57.5m penalty against BlueScope Steel underscores the severity of engaging in this behaviour.

  • Businesses must ensure they have regular competition compliance training for their staff to avoid inadvertently engaging in cartel conduct.

For more information on cartels or competition law compliance, contact Clayton Utz’s competition law team.

Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.