ACCC launches legal case against stevedores

<p>Breaking news:</p> <p>The Australian Competition and Consumer Commission late this afternoon (Friday, August 24) said it had begun legal proceedings against several former Patrick and P&#38O companies for alleged contraventions of section 45 of the <em>Trade Practices Act 1974</em> .</p> <p>The ACCC said it had also instituted legal proceedings against Australian Amalgamated Terminals Pty Ltd for its involvement in a number of the alleged contraventions.</p> <p>The ACCC has also instituted legal proceedings against former Patrick chief executive Chris Corrigan, former director of the Patrick automotive and general stevedoring division, Don Smithwick, Andrew Burgess, former Regional Director of P&#38O Australia &#38 New Zealand and former P&#38O Australia and P&#38O Ports managing director Tim Blood.</p> <p>A directions hearing has been listed for September 20 before Justice Sackville of the Federal Court, in Sydney.</p> <p>The ACCC alleges that in 2001 P&#38O and Patrick formed an agreement to share their motor vehicle wharf facilities around Australia and to jointly acquire other facilities <em>(First Agreement)</em> . </p> <p>The ACCC alleges that the purpose and likely effect of this agreement was to substantially lessen competition between the companies in a number of markets in Sydney, Brisbane, Melbourne and Adelaide.</p> <p>The ACCC alleges that in 2002 a further agreement was entered into between P&#38O and Patrick, which extended the areas of cooperation between the companies <em>(Second Agreement)</em> .</p> <p>The ACCC alleges that both agreements sought to fix the prices of P&#38O and Patrick for the provision of stevedoring services from shared facilities, in contravention of section 45 of the TPA.</p> <p>The ACCC alleges that the agreements were put into effect by P&#38O and Patrick in a number of ways during the period 2001 to date, including by the formation of Australian Amalgamated Terminals.</p> <p>The ACCC is seeking a range of remedies including:</p> <p>&#8226 Injunctions</p> <p>&#8226 Declarations</p> <p>&#8226 Pecuniary penalties and</p> <p>&#8226 Orders preventing the companies from continuing to give effect to the allegedly illegal agreements. </p> <br />