Cleaning companies accused of cartel price fixing

A cleaning company accused of cartel behaviour by Australia’s consumer watchdog has denied wrongdoing and vowed to fight the allegations.

The Australian Competition and Consumer Commission launched civil legal action in the Federal Court against Spotless and Ventia for alleged price fixing for services provided to Defence bases.

The companies each provide services to more than 200 bases and properties across the country as part of separate billion-dollar Defence contracts.

Downer, which owns Spotless, said it “categorically denies” the allegations and “will vigorously defend any proceedings”.

“Downer is of the view that neither Spotless nor the two Spotless employees referred to by the ACCC engaged in unlawful conduct,” it said in a statement on Thursday.

“(It) is committed to acting in accordance with the standards that have underpinned the long-standing, trusted relationship it has with Defence.”

A spokesman for Ventia said the company was reviewing details of the consumer watchdog’s allegations.

“Ventia is committed to ethical business practices and seeks to uphold the highest standards of governance and risk management in all our operations,” the spokesman said.

“Ventia will continue to focus on delivering high-quality services to all customers.”

The commission alleges on three occasions between April 2019 and August 2022, Ventia and Spotless made or attempted to make arrangements that fixed the prices at which services would be provided in breach of the cartel provisions.

Senior executives Jacob Bonisch and Jeffrey Collins, who are employed within the Spotless corporate group, and Ventia senior executives Gavin Campbell and Lena Parker are also accused of being involved.

Commission chair Gina Cass-Gottlieb said one of the programs alleged to have been the subject of price fixing, related to federal government funding for businesses during the COVID-19 pandemic.

“We allege this conduct caused direct harm to the Commonwealth and ultimately Australian taxpayers,” she said.

The commission is seeking penalties and costs against the companies and senior executives and disqualification orders against three of the executives.

Defence base services contracts held by Ventia and Spotless expire in mid-2025.

Defence did not know about the alleged behaviour.

Spotless delivers services across government, education, health care and aged care.

Ventia, formerly Broadspectrum (Australia) Pty Ltd, provides services to the defence, infrastructure, telecommunications and transport sectors.