Australian Commission Instigates Marine Cartel Court Action

It has been more than a year since UK-based trio Peter Whittle, David Brammar and Bryan Allison were sentenced for their role in a well-publicised global marine hose cartel, yet investigations into the affair continue. The Australian Competition and Consumer Commission (ACCC) has commenced court action in response to allegations that the cartel took advantage of some of the nation’s largest oil production projects.

The ACCC alleges that four marine hose manufacturers – Bridgestone Corporation, Dunlop Oil & Marine, Parker ITR and Trelleborg Industrie – conspired to fix prices and not compete against each other when oil producers Woodside Petroleum, BHP Billiton, ConocoPhillips, ExxonMobil and others sought quotes for vital items of equipment valued at millions of dollars. Although the ACCC filed the case in the Australian Federal Court on June 1, the companies have not yet (as of June 23) been served notice of the case. The documents filed with the court cover meetings in the UK, US and Thailand dating from 1999, during which some of the manufacturers are alleged to have agreed to co-ordinate prices and engage in uncompetitive practices.

The start of investigations in Australia coincides with the Federal Senate’s June 15 approval of laws permitting cartel activities occurring after that date to be prosecuted as criminal offences. Individuals can be imprisoned for up to 10 years and penalised AUS$220,000 (£106,000), while companies face penalties of up to $10 million.