Australian Competition and Consumer Commission v ABB Transmission and Distribution Limited

The Australian Competition and Consumer Commission brought an action against ABB Transmission and Distribution Limited and others in the Federal Court of Australia, alleging breaches of the Trade Practices Act 1974. The ACCC claimed that the respondents had engaged in anti-competitive practices by fixing, controlling, or maintaining tender prices for distribution transformers, as well as restricting or limiting the supply of such transformers to electricity utilities or other purchasers. The court was required to determine whether the respondents had indeed engaged in these practices and, if so, what penalties and injunctive relief were appropriate.

The court found that the respondents had engaged in the anti-competitive practices as alleged by the ACCC. The court held that the respondents had entered into agreements that had the purpose or effect of fixing, controlling, or maintaining tender prices for distribution transformers and had restricted or limited the supply of such transformers to certain purchasers. The court found these practices to be in breach of the Trade Practices Act 1974, specifically sections 45 and 46, which prohibit anti-competitive conduct.

Consequently, the court ordered the sixth respondent to pay a pecuniary penalty of $1,500,000 and imposed a four-year injunction against making or arriving at, giving effect to, or being in any way, directly or indirectly, knowingly concerned in, or party to any contract, arrangement, or understanding that had the purpose, or had or was likely to have the effect, of fixing, controlling, or maintaining tender prices submitted by manufacturers or suppliers of distribution transformers, or had the purpose of preventing, restricting, or limiting the supply of distribution transformers by such manufacturers or suppliers to electricity utilities or other purchasers of distribution transformers at particular prices or at all. The fifteenth and sixteenth respondents were also restrained for a period of 4 years from being in any way, directly or indirectly, knowingly concerned in, or party to any contract, arrangement, or understanding that had the purpose, or had or was likely to have the effect, of fixing, controlling, or maintaining tender prices submitted by such manufacturers or suppliers. The sixth respondent was further ordered to pay the ACCC's costs of $40,000 within thirty days of the date of this order.