The Federal Court of Australia has determined that Qteq Pty Ltd, an oil and gas services company, along with its executive chairman Simon Ashton, engaged in cartel conduct between 2017 and 2019. This ruling follows legal action initiated by the Australian Competition and Consumer Commission (ACCC).

During the specified period, Qteq and Mr. Ashton made five attempts to persuade suppliers in the oil and gas industry to enter into contracts that included cartel provisions. These provisions involved agreements not to supply certain services to major oil and gas companies, market sharing, and rigging a multi-million-dollar tender.

ACCC Chair Gina Cass-Gottlieb emphasized the importance of this case, stating that such attempts could significantly harm competition among Qteq and its competitors in the supply of goods and services within the industry. She reiterated that cartels pose a severe threat to competition and that the ACCC prioritizes actions against them.

While the Court ruled against Qteq and Mr. Ashton on most counts, it did not find in favor of the ACCC regarding one additional instance of alleged cartel conduct. A further hearing will be scheduled to discuss penalties and other orders related to the case.

Qteq, based in Queensland, specializes in providing mining equipment and technology services, particularly in the upstream oil and gas sector. The company is known for its market-leading position in the sale, installation, and servicing of downhole pressure gauges used by coal seam gas producers.

The ACCC initiated civil cartel proceedings against Qteq and Mr. Ashton in December 2022, highlighting the serious nature of cartel conduct, which includes price fixing, market sharing, and bid rigging. The maximum penalties for such conduct have been significantly increased since November 2022, underscoring the seriousness with which these offenses are treated.