George Kamencak Regional Director. Greg Trengove Regional Outreach Manager. South Australia. Who is the ACCC? ACCC is a independent statutory authority. This session will cover:. What cartels are How you can avoid them How you can detect them What you should do if you are suspicious
Regional Outreach Manager
ACCC is a independent statutory authority
2005 Media Release: Major Pizza Franchise
Said a five-year supply agreement with a cardboard packaging company for their boxes would generate cost savings of up to $250,000 in the first year.
If we estimate 430 stores @ 500 pizzas per store per day. Each box costs 60c. 10% premium as result of cartel = 6c per box.
Over one year, the cost to pizza chain would be:
The greater of:
- $10 million
- 3 times the value of the benefit
- 10% of the annual turnover
& Criminal penalties on the horizon
4 kinds of market sharing agreements, where competitors refrain from:
Price fixing is an agreement between competitors to fix, control or maintain the price of goods or services.
Price fixing agreements do not have to be in writing: they can be a `wink and a nod’, made over a drink in the local pub, at an association meeting or at a social occasion.
Key point: Competitors are working out their prices collectively and not individually.
An agreement between competitors to restrict their output to the market:
Collusive tendering is an agreement between two or more competitors where, in response to a call for tenders, one or more of the competitors agrees either:
This occurs when tenderers:
This is the opposite of cover tendering and involves one or more of the tenderers agreeing:
This is a systematic method by which the tenderers take turns being the lowest tenderer.
Schemes of this nature are difficult to catch because the tenderers try to make sure that they each receive an equivalent share.
For example ….
It may only be at an aggregated level, that the extent of the Cartel is evident.
The nature of the industry and the behaviour of industry participants can provide signs indicating that a cartel is operating.
They are difficult to detect and prove
ACCC contact details
General line: 1300 302 502
Adelaide Office: 8213 3444
Web Page: www.accc.gov.au