An ugly transformation in the land of Oz

Schneider Electric, the Wilson Transformer Company and AW Tyree Transformers have been fined over $10 million for price-fixing in Australia.

A Federal Court in Melbourne, Australia has ordered Schneider Electric (Australia), the Wilson Transformer Company and AW Tyree Transformers to fork out over $10 million in penalties for their involvement in price-fixing activities which contravene the Australian Trade Practices Act of 1974.

Last year, the Australian Federal Court ordered Alstom Australia to pay a pecuniary penalty of $5.5 million for its participation in the scandal.

The companies involved are the principal manufacturers and suppliers of distribution transformers in Australia, which are used in electricity distribution networks. The primary consumers of these transformers are electricity utilities, and the business is said to be worth a colossal $100,000,000.

Schneider Electric, Wilson Transformer and AW Tyree each admitted to the court that they had engaged in extensive market sharing and price fixing in the market for distribution transformers during the1990s, a practise which continued until 1999.

The judge ordered Schneider to pay $7 million, WTC $2.5 million and AW Tyre $3.5 million. All the Managing Directors of the three companies were also fined heavily.

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