According to the ACCC, between April 2019 and August 2022, Spotless and Ventia colluded to fix service prices, violating cartel provisions.

The Australian Competition and Consumer Commission (ACCC) has launched legal action against cleaning companies Spotless and Ventia, alleging price fixing related to services at Defence bases.

Key executives implicated in the allegations include Jacob Bonisch and Jeffrey Collins from Spotless, along with Gavin Campbell and Lena Parker from Ventia.

Both companies are significant service providers, managing contracts worth billions and providing services to over 200 Defence properties across Australia.

Downer Group has categorically denied the allegations, asserting its commitment to governance and compliance, and plans to vigorously defend against the charges.

Following the ACCC's announcement, Ventia's shares plummeted by 18% to $3.49, while Downer's shares, the parent company of Spotless, fell by 8% to $5.25.

The Defence contracts held by Spotless and Ventia are set to expire in mid-2025, and Defence officials were reportedly unaware of the alleged cartel behavior.

Ventia is currently reviewing the allegations and emphasizes its commitment to ethical business practices and high governance standards.

The ACCC is seeking civil penalties, costs against the companies, and disqualification orders against three implicated executives, with potential penalties exceeding $10 million.

ACCC chair Gina Cass-Gottlieb stated that the alleged price fixing caused direct harm to the Commonwealth and taxpayers, particularly during the COVID-19 pandemic.

One notable incident cited by the ACCC involves the STIM20 program, where executives from both companies allegedly sought additional compensation from Defence beyond agreed amounts during the COVID-19 pandemic.

Ventia and Spotless hold substantial contracts with the Department of Defence, valued at $4 billion and $5.8 billion, respectively.