17 April 2025 – The Federal Court has found that Queensland-based oil and gas services company Qteq Pty Ltd and its executive chairman Simon Ashton engaged in cartel conduct by attempting to induce anti-competitive agreements in the oil and gas industry.
Following action by the Australian Competition and Consumer Commission (ACCC), the Court determined that between 2017 and 2019, Qteq and Mr Ashton made five separate attempts to induce competitors to enter into arrangements that included cartel provisions such as market sharing, bid rigging, and agreements not to supply certain services to major oil and gas companies.
“These attempts had the potential to impact competition between Qteq and other current or likely competitors,” said ACCC Chair Gina Cass-Gottlieb. “Cartels are the most fundamental attack on competition in our economy, and taking actions against them is a high priority for the ACCC.”
The attempted collusion targeted services in the upstream production phase of the oil and gas sector, specifically relating to “gauge works” — the installation and servicing of downhole pressure gauges used to monitor coal seam gas wells. At the time, Qteq was the market leader in this niche.
While the Court ruled in favour of the ACCC on five instances, it did not uphold a sixth allegation. A separate hearing will be held to determine penalties and other remedies.
The ruling underscores the ACCC’s strict stance on cartel conduct and sends a clear warning to businesses and senior executives: even attempting to form collusive arrangements with competitors can result in legal consequences.
The final judgment is pending publication following a confidentiality review by the respondents.
