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AAP
AAP
National
Hannah Ryan

Rip-off attempt on National Gallery: ACCC

The ACCC is taking action against a company involved in a National Gallery of Australia tender. (AAP)

The competition watchdog is suing a company and its sole director for trying to rig a tender bid issued by the National Gallery of Australia.

Delta Building Automation's and Timothy Davis engaged in attempted cartel conduct in late 2019, the Australian Competition and Consumer Commission says in the court filing.

Mr Davis met a competitor at a Canberra cafe in late 2019 and tried to fix the price of bids to be submitted by Delta and the competitor.

Taxpayers were only saved from paying an inflated price because the competitor rejected the approach, the ACCC says.

The National Gallery had called for bids for its building management system that was to be replaced.

"We take cartel activity very seriously, particularly when it involves government procurement," ACCC chief Rod Sims said on Thursday.

"After all, it's taxpayers that are losing from higher prices, which is what cartel activity is usually trying to bring about."

The National Gallery was not aware of the behaviour. It didn't suffer any loss because the scheme never eventuated.

The ACCC is seeking pecuniary penalties, injunctions and declarations. It also wants Mr Davis to be disqualified from managing a company.

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