Court for crane rental firms over cartel allegations

Four mobile crane rental companies in Australia are facing allegations of arranging to withhold the supply of services to certain customers or sites. Two of the companies also allegedly attempted to fix prices, according to the Australian Competition and Consumer Commission (ACCC).

ACCC initiated civil cartel proceedings in the Federal Court against Borger Crane Hire & Rigging Services Pty Ltd, MCR Melrose Pty Ltd, Two Way Cranes Pty Ltd and Ultra-Lift Cranes Pty Ltd, all in Sydney.

The ACCC alleged the four companies breached Australia’s cartel laws, likely impacting customers and construction sites between 2020 and 2024.

“The allegations in this case involve the conduct of the largest mobile crane companies in Sydney that regularly supply mobile cranes for major infrastructure projects, small business and residential building work,” according to Gina Cass-Gottlieb, ACCC chair.

“When companies collude to limit supply or fix prices, it reduces competition in the market and harms businesses and consumers.”

According to the ACCC, WhatsApp chat groups named “Crane Companies” and “Big3” were used in identifying building sites or customers and to make arrangements between the companies that some or all of them would not supply cranes to these sites or customers.

It is noted in the ACCC statement that some of the customers owed money for mobile crane hire.

Who is involved

ACCC alleges the involvement of four senior figures from the companies: Shawn Borger, Borger Cranes general manager; Gregg Melrose, former managing director at Melrose Cranes; and its former general manager, Ryan Melrose; and Frank Zammit, managing director at Two Way Cranes and at Ultra-Lift Cranes.

Further allegations were made by the ACCC of three attempts in 2022 to fix mobile crane rental and cross-hire rates with competing crane companies.

“We will continue to hold companies and individuals accountable for conduct that we consider harms competition and, ultimately, the broader community,” Cass-Gottlieb said.

ACCC stated “it is seeking declarations, pecuniary penalties and costs against the businesses and the four senior executives, disqualification orders against three of the senior executives, and compliance orders against Borger Cranes, Two Way Cranes and Ultra-Lift Cranes.”

Penalties for these charges can range from hundreds of thousands to millions of dollars.

ACCC went on to explain some of what it alleged arose in the context of ongoing negotiations between the mobile crane rental companies and the Construction, Forestry and Maritime Employees Union (CFMEU) around new Enterprise Bargaining Agreements.

“Certain alleged arrangements were entered into in circumstances where mobile crane companies had been, or were at risk of being, removed from sites due to the CFMEU. Other alleged arrangements were entered into in circumstances where the affected customers were identified as having unpaid debts for mobile crane hire services,” ACCC said.