Cement Australia to pay an extra US$16.1m over fly ash competition case

The Australian Competition and Consumer Commission (ACCC) has failed to win a substantial increase in the penalty awarded against Cement Australia for breaching the competition rules over the purchase of fly ash in Queensland.

However, the competition regulator did win a technical argument over who is liable for payment of the fine in the case of jointly-owned companies.

Cement Australia is owned by global giants Hanson and Holcim and the case centred on contracts to buy fly-ash from the Millmerran power station in Queensland. The ACCC alleged Cement Australia acquired fly-ash to deny competitors access to the product.

In 2013 Federal Court judge Justice Andrew Greenwood awarded a penalty of AUD17.4m (US$13.6m) against Cement Australia and this was increased to AUD20.6m (US$16.1m) by the Full Federal Court on 5 October 2017, but the ACCC had sought an increased fine of AUD100m.