• American-based company DRS C3 Systems has been penalised for cartel behaviour in the
international military defence training systems industry.
    American-based company DRS C3 Systems has been penalised for cartel behaviour in the international military defence training systems industry.
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The Federal Court has made orders by consent against American-based company DRS C3 Systems for cartel behaviour in the international military defence training systems industry.

As part of the resolution of the proceedings brought by the Australian Competition and Consumer Commission, DRS agreed to pay $1 million in penalties.

DRS entered into an agreement with another company that it would withdraw from a proposed procurement of an air combat manoeuvring instrumentation system by the Commonwealth of Australia for use as part of a joint training exercise between Australian military forces and the US Air Force in the Pacific.

The resolution of this matter took into account that the conduct was an isolated incident over a confined period of time and did not cause any evident loss or damage to the Department of Defence.

The court also took into account the significant level of cooperation provided by DRS to the ACCC during the investigation of the matter and its willingness to admit the conduct and agree to settlement terms.

As a result of this cooperation and expression of contrition, the court agreed with the joint submission of the parties that the penalty should be discounted by one-third.

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