A mining services company has rejected allegations it tried to establish a cartel with rivals in breach of competition laws.
The Australian Competition and Consumer Commission on Thursday alleged Qteq attempted to enter or induce four other suppliers into an arrangement to not provide certain services to large oil and gas companies.
The suppliers approached were businesses competing with Qteq, a market leader in gauge work services that are vital for coal seam gas operators.
Qteq allegedly contacted the competitors seven times between 2017 and 2019, with executive chairman Simon Ashton involved six times.
Civil cartel proceedings were filed in the Federal Court on Thursday.
The regulator’s case does not allege criminality by Qteq or Ashton.
“When businesses seek to allocate particular clients between them or agree not to bid on certain contracts, they distort competition, which can ultimately drive up prices to the detriment of other businesses and the wider economy,” ACCC Commissioner Liza Carver said in a statement.
“Pursuing cartel conduct remains one of our enduring priorities.
“We carefully consider all allegations of attempted or actual cartel conduct received, including tip-offs from industry insiders and customers, as well as anonymous reports made via our cartel reporting portal.”
However, the Brisbane-based company believes the regulator is barking up the wrong tree.
“We categorically deny all allegations that have been made and will rigorously contest all claims made by the ACCC,” chief executive Ewan Meldrum said in a statement.
Mr Meldrum said the business, almost completely owned by staff and management, created ongoing economic, environmental, and social benefits, including through disaster management technology.
“Qteq takes great pride in its reputation for conducting its business in a professional and ethical manner,” he said.
“We have fully co-operated with the ACCC’s requests for information throughout its investigative process and is confident it has appropriately followed all rules and regulations.
Qteq’s primary business is the sale, installation, and servicing of downhole pressure gauges to coal seam gas producers.
Those gauges allow the monitoring of the water level in a coal seam gas well so that the rate at which water is pumped out of the coal seam can be controlled.
The civil case will be heard in the Federal Court at a date yet to be fixed.
If the court finds the cartel conduct occurred, it may fine Qteq $10 million per offence or, if greater than $10 million, amounts based on the corporation’s annual turnover at the time of the offending.
