Powered by MOMENTUM MEDIA
the adviser logo
Lender

ANZ price fixing allegations dismissed

by Steven Cross5 minute read

The Federal Court has dismissed proceedings brought by the Australian Competition and Consumer Commission (ACCC) that ANZ breached price fixing laws.

The case was brought to the courts by the ACCC after ANZ allegedly threatened to remove accreditation for Mortgage Refunds Pty Ltd unless the brokers capped their consumer refunds at $600.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

This would allow ANZ branches to match the deal if they chose to waive the ANZ loan establishment fee, according to the ACCC.

The court case looked into whether or not this amounted to price fixing, since ANZ and brokers are competitors in the market for the provision of loan arrangement services.

Advertisement
Advertisement

During the case, a former Mortgage Refunds broker told the court the implications of the arrangement: “The imposition of the upper limit for ANZ loans was contrary to this basic business principle,” the judgement reads.

“Some customers insisted that they be paid the same refunds as were paid for other home loan products in accordance with Mortgage Refunds’ advertisements.”

However, the Court found that ANZ did not participate in a market for the provision of loan arrangement services and consequently that ANZ and Mortgage Refunds were not competitors in this market. 

As a result, ANZ’s conduct was found not to amount to a price fixing agreement. 

“Anti-competitive agreements between competitors are a priority for the ACCC,” said Rod Sims, ACCC chairman. “When businesses seek to fix, control or maintain the prices, rebates or discounts offered by their competitors, this can prevent or hinder competition, forcing up prices and reducing choices for consumers.

“In this case, the ACCC was concerned that the conduct affected price competition, which would ultimately impact upon consumers.

“It was especially significant that this conduct took place in the market for mortgage arrangement services, as home loans are a major cost for many people,” Mr Sims said.

ANZ price fixing allegations dismissed
default
TheAdviser logo
default

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

sam jolley elders ta iwsfut

Elders welcomes 1st national growth and asset finance manager

Elders Home and Commercial Finance, the independent broking arm aligned with the real estate network of Elders Ltd,...

READ MORE
rael ross butn ta rerexr

Butn achieves record originations in July

Cash flow financier Butn has released a trading update, revealing that its 2023 financial year commenced with a new...

READ MORE
daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more