ACCC takes steel giant BlueScope to court

THE competition watchdog is suing Australia’s biggest steelmaker and one of its former executives, saying they attempted to fix or push up market prices.

BlueScope Steel is being hauled to Federal Court by the Australian Competition and Consumer Commission for alleged cartel conduct.

The ACCC has launched civil proceedings against the company and its former sales general manager, claiming they attempted to fix or raise the level of pricing for flat steel products supplied in Australia.

BlueScope and former executive Jason Ellis attempted to induce various steel distributors in Australia and overseas to enter into agreements containing a price-fixing provision, the watchdog says. Mr Ellis is the son of former BHP chair Jerry Ellis.

In a statement yesterday, BlueScope said it did not believe it or any employees, past or present, had engaged in cartel conduct.

BlueScope chair John Bevan said they were “serious allegations and the board is treating them very seriously”. BlueScope said it would continue to engage constructively with the ACCC.

ACCC chair Rod Sims said BlueScope was the major manufacturer of flat steel products in Australia.

“Flat steel products are an essential material in a number of important sectors of the Australian economy, including the construction, building, manufacturing, automotive and transport industries,” he said. “This matter involves allegations of serious cartel conduct,” he said.

The ACCC alleges the conduct occurred between September 2013 and June 2014.

It is seeking to have Mr Ellis disqualified from managing corporations, as well as declarations, pecuniary penalties and costs. BlueScope shares climbed 1.6 per cent, or 20c, yesterday to $12.49.