The Federal Court has today convicted and sentenced waste management companies Bingo Industries, and Aussie Skips Bin Services and Aussie Skips Recycling (together, Aussie Skips) for criminal cartel offences under sections 45AF and 45AG of the Competition and Consumer Act relating to a price fixing arrangement for demolition waste services in Sydney.
Bingo's former Managing Director and CEO, Daniel Tartak, and Aussie Skips' former CEO Emmanuel Roussakis were also convicted and sentenced.
These prosecutions were brought by the Commonwealth Director of Public Prosecutions (CDPP), following an investigation and referral by the ACCC.
Bingo was fined $30 million and Aussie Skips was fined $3.5 million after each company pleaded guilty to having fixed and increased prices with the other for the supply of skip bins and the provision of waste processing services for building and demolition waste in Sydney.
Bingo's fine of $30 million is the second largest fine imposed for criminal cartel offences under the Competition and Consumer Act.
Mr Tartak was sentenced for two criminal cartel offences to two terms of imprisonment of 18 months each, to be served concurrently over two years as an intensive correction order, including 400 hours of community service. Mr Tartak was also fined $100,000 and banned from managing corporations for a period of five years.
Mr Roussakis was sentenced to 18 months' imprisonment for one criminal cartel offence, to be served as an intensive correction order, including 300 hours of community service. Mr Roussakis was also fined $75,000 and banned from managing corporations for a period of five years.
In imposing these sentences, the Court took into account the early guilty pleas of each of the offenders.
This brings to a close an extensive investigation by the ACCC into cartel conduct in the building and demolition waste services industry in Sydney.
"The sentences handed down today should serve as a strong reminder that criminal cartel conduct is a serious offence attracting serious consequences, including criminal convictions, significant fines, banning orders, and potential imprisonment for individuals," ACCC Chair Gina Cass-Gottlieb said.
"Cartel conduct is illegal because it increases the prices consumers and businesses have to pay, and restricts healthy competition and economic growth."
"We will continue to investigate cartel conduct and refer appropriate matters to the Commonwealth Director of Public Prosecutions for consideration of criminal prosecution," Ms Cass-Gottlieb said.
"We encourage anyone who observes anti-competitive conduct in their industry or workplace to contact the ACCC confidentially. We will review their concerns and take action if warranted."
"We have special arrangements for anyone who wants to anonymously report cartel conduct, via a secure third party platform that protects their identity and by anonymously calling our dedicated hotline," Ms Cass-Gottlieb said.
In delivering judgment, Justice Wigney said "Cartels are widely condemned as the most egregious forms of anti-competitive behaviour. At its heart a cartel is an agreement between competitors not to compete. Cartel conduct harms consumers, businesses, and the economy, and is likely to increase prices, reduce choice and distort innovation processes."
Justice Wigney also observed that the price-fixing arrangements between Bingo and Aussie Skips "had the effect of suppressing and distorting price competition in respect of collections services and processing services in the Sydney metropolitan region or a significant part thereof. The markets for collections services and processing services in that region were large and lucrative. The effect of the cartel conduct was that some consumers of collections services and processing services in that region were likely to have paid more for those services than they otherwise would have."
The cartel operated between May 2019 and August 2019, with Bingo and Aussie Skips agreeing to fix prices for their waste collection services and waste processing services in Sydney from 1 July 2019.
The ACCC's investigation began in June 2019 after it received complaints concerning price increases which came into effect from 1 July 2019 after the introduction of a government levy.
Background
Bingo is a waste management company that provides landfill, waste processing and skip bins services throughout New South Wales, Victoria, and Queensland.
Aussie Skips Bin Services and Aussie Skips Recycling are Sydney-based waste management businesses that respectively supply skip bins and waste processing services for building and demolition waste.
On 16 August 2022, Bingo and Mr Tartak were charged with criminal cartel offences. Bingo pleaded guilty on the same day. On 20 October 2022, Mr Tartak pleaded guilty to the charges against him.
On 14 December 2022, Aussie Skips and Mr Roussakis were each charged with a criminal cartel offence. Aussie Skips and Mr Roussakis pleaded guilty to their respective charges on 27 February 2023.
Note
A cartel exists when businesses agree to act together instead of competing with each other. Conduct can include fixing prices, sharing markets, rigging bids, or controlling the output or limiting the amount of goods or services. More information on cartel conduct can be found on the ACCC's website at Cartels.
The ACCC investigates cartel conduct, manages the immunity process and, in respect of civil cartel contraventions, takes proceedings in the Federal Court.
The CDPP is responsible for prosecuting criminal cartel offences in accordance with the Prosecution Policy of the Commonwealth. The ACCC refers serious cartel conduct to the CDPP for consideration of prosecution in accordance with the Memorandum of Understanding between the CDPP and the ACCC regarding Serious Cartel Conduct.
The offences in this matter occurred in 2019. For corporations, the maximum fine for each criminal cartel offence before 9 November 2022 is the greater of:
- $10 million,
- three times the total benefits that have been obtained and are reasonably attributable to the commission of the offence, or
- if the total value of the benefits cannot be determined, 10 per cent of the corporation's annual turnover connected with Australia.
An individual convicted of a criminal cartel offence before 9 November 2022 may be sentenced to up to 10 years' imprisonment or fined up to $444,000, or both.
The maximum fines and civil penalties for cartel conduct by corporations were substantially increased with effect from 9 November 2022, by legislation passed by Parliament in October 2022.
Anyone who thinks they may be involved in cartel conduct is urged to call the ACCC Cartel Immunity Hotline on (02) 9230 3894. More information about the immunity process is available on the ACCC website at Cartels.
You can report suspected cartel conduct by using the anonymous cartel portal (link is external).
Use this form to make a general enquiry.
