Australia’s antitrust authority has accused Swift Networks of conspiring with a rival to rig bids and fix prices for the supply of technology equipment and infrastructure to several mining sites.
The Australian Competition and Consumer Commission filed a lawsuit before the Federal Court today alleging that the technology company colluded on five occasions in 2019 with DXC Connect and DXC Technology Australia. The conspiracy rigged bids and fixed prices for the supply of technology infrastructure at mining camps in Western Australia’s Pilbara region.
The technology infrastructure included IT, entertainment systems, and internet and media services such as free-to-air or subscription television. The tenders were launched for projects at four Rio Tinto sites and one that was operated by Fortescue Metals, the ACCC said.
On all five occasions, Swift Networks and DXC agreed that one company would submit a higher bid than the other in response to the tenders, the ACCC added.
Since late 2017, both companies engaged each other as subcontractors for technology infrastructure supplies in the Pilbara region. But on those five projects “Swift and DXC acted beyond the scope of any sub-contracting relationship,” the ACCC alleged.
The watchdog is seeking fines, costs and a declaration that Swift Networks violated the country’s Competition and Consumer Act.
The ACCC declined to comment when asked if it was continuing an investigation into DXC or if the company applied for leniency.
ACCC commissioner Liza Carver said the case should serve as a reminder to all businesses “that they must exercise caution when they are dealing with competitors to ensure that these discussions do not lead to anticompetitive arrangements, including cartel conduct”.
The maximum penalty for a cartel infringement is the greater of A$50 million (€32.1 million), three times the “reasonably attributable” benefit obtained from the illegal conduct or 30% of turnover during the period of the offence if that benefit cannot be ascertained.
The government boosted the base maximum penalties for competition law violations in October 2022, marking the first increase in 30 years.
Swift Networks was contacted for comment.
