Bingo Industries faces fines of $10 million or more after pleading guilty to criminal cartel offences where prices were allegedly fixed for demolition waste services in Sydney.
The waste management firm has been accused in the Federal Court of fixing the prices of skip bins and waste processing services with two competitors Skips Bin Services and Aussie Skips Recycling in 2019.
The Australian Competition and Consumer Commission said on Tuesday that Bingo had pleaded guilty to the offences.
An investigation by the consumer watchdog uncovered the alleged price fixing which affected what Sydney customers paid for waste processing services for building and demolition across the state capital.
"When companies arrange to fix prices, they usually do so to increase their profits, and it is consumers that pay the increased cost," said ACCC chair Gina Cass-Gottlieb.
The matter was referred to the Commonwealth Department of Public Prosecutions which is spearheading the case in the Federal Court.
Bingo's former manager director and CEO Daniel Tartak has also been hit with two criminal cartel charges.
"We are committed to detecting and investigating serious cartel allegations and taking appropriate action against those who are a party to illegal cartel behaviour, including referral of matters to the CDPP," Ms Cass-Gottlieb said.
"Cartel conduct not only frequently impacts consumers, but it can also significantly harm competing businesses and the economy more broadly."
In a statement, Bingo distanced itself from the conduct which it said occurred over two months in July and August 2019.
"Bingo has cooperated with the ACCC and the CDPP throughout its investigation and regrets that the matter occurred. It does not reflect Bingo's values or standards of conduct," the firm said.
"Since the matter occurred there have been significant changes in Bingo's ownership, Board and executive team, including improvements to Bingo's governance processes."
In investigating cartels, the ACCC can choose to provide immunity to current or past cartel members that come forward and cooperate with authorities.
For corporations, the maximum fine available for cartel breaches is at least $10 million but can be greater, based on the total benefit obtained through the illegal conduct or the firm's annual turnover.
Individuals convicted face potential maximum jail time of 10 years and fines of up to $440,000.
