ACCC targets crane companies for alleged cartel agreements

The ACCC alleges that in meetings, phone calls and emails the companies sought to enter an agreement of mutual benefit to both parties.

The ACCC has launched a cartel action alleging market sharing and price fixing in the Queensland crane market. Picture: #hsinstagram

The ACCC has launched a cartel action alleging market sharing and price fixing in the Queensland crane market.

In a statement the ACCC said on Monday it has commenced civil proceedings in the Federal Court against overhead crane company NQCranes Pty Ltd, alleging it engaged in cartel conduct in contravention of the Competition and Consumer Act.

The other company involved according to the Statement of Claim is MHE Demag Australia Pty Ltd.

“The ACCC alleges that NQCranes entered into a signed agreement with a competitor in the overhead crane market in August 2016. This agreement allegedly included a cartel provision to share the market by not targeting each other’s customers for overhead crane parts and servicing in Brisbane and Newcastle.

Specifically, it is alleged that NQCranes and its competitor entered into a distributorship agreement, that contained a provision that the companies would not target each other’s existing service customers in Brisbane and Newcastle.

The ACCC alleges that in meetings, phone calls and emails the companies sought to enter an agreement of mutual benefit to both parties, and that the non-targeting of each other’s customers in Brisbane and Newcastle was a key part of that agreement.

“NQCranes was competing for business with a competitor when we allege they agreed to divide the market and not to target each other’s customers. Market sharing is serious, anti-competitive behaviour which harms consumers, other businesses and the economy in general,” ACCC chair Rod Sims said.

“It is illegal for any corporation to make cartel agreements with its competitors, whether they are well known multinationals, or small businesses operating in regional areas. Enforcing cartel laws is an important enduring priority for the ACCC, no matter what type of business is involved,” Mr Sims said.

The ACCC is seeking civil penalties, declarations and orders against NQCranes for the alleged conduct.

Cartels are a major focus of ACCC competition enforcement.