Credit: Dreamstime
Swift Networks has been hauled into court for allegedly engaging in cartel behaviour with partner DXC Technology for mining contracts in Western Australia.
The telecommunications solutions provider is being taken to Federal Court by the Australian Competition and Consumer Commission (ACCC) over allegations of bid rigging and price fixing when tendering to supply equipment and services to five Pilbara mining village sites in 2019.
According to the ACCC, Swift made an agreement with a competitor, DXC Technology Australia and its subsidiary DXC Connect to rig bids and fix prices for the supply of IT, communications, and audio-visual entertainment infrastructure and associated services such as free-to-air or subscription television to mining villages.
The tenders were for projects located at Rio Tinto Limited’s Gudai-Darri; West Angelas and Yandicoogina; Western Turner Syncline; and Peninsula Palms sites; and at Fortescue Metals Group Limited’s Japal Village Iron Bridge site. For these five projects, it is alleged Swift and DXC agreed that one of them would offer a higher price than the other in response to a request for bids.
Publicly listed Swift Networks noted that the allegations concern two employees, neither of whom were senior management.
Writing to shareholders, the company commented: “Swift takes competition law seriously and had in place, at the time, policies and codes of conduct which applied to all employees.
“Swift has cooperated with the ACCC in its investigations. Swift has engaged Clayton Utz to assist with this matter. Swift’s top priority is to ensure our culture drives the highest levels of integrity and not be led by the behaviour of others.
“As the matter is now before the Federal Court, Swift is not able to make any further comment.”
DXC Technology has also been contacted for comment.
Since late 2017, Swift and DXC have engaged each other as sub-contractors for projects involving the supply of technology infrastructure to mining sites in the Pilbara. However, in the case of the five projects, the ACCC claims that Swift and DXC acted beyond the scope of any subcontracting relationship.
“Bid rigging and price fixing drive up prices for businesses and harms the economy, which is why cartel conduct is a serious breach of our competition laws,” ACCC commissioner Liza Carver said.
“This case is a reminder to all businesses, large or small, that they must exercise caution when they are dealing with competitors to ensure that these discussions do not lead to anti-competitive arrangements, including cartel conduct.”
The ACCC is seeking declarations, penalties, costs and other orders.
