Downer subsidiary Spotless faces ACCC legal action

Downer subsidiary Spotless faces ACCC legal action

Infrastructure Services Company Downer EDI (ASX:DOW) has announced that Spotless Facility Services, a subsidiary, will defend civil proceedings brought by the Australian Competition and Consumer Commission (ACCC).

The ACCC’s allegations relate to conduct in 2019 and 2020 relating to heritage maintenance services provided to the Department of Defence. The ACCC says Spotless, along with two other service companies — BGIS and Ventia Services Group (ASX:VNT) — engaged in anti-competitive behavior in the provision of these services.

Spotless is a provider of outsourced facilities management services, providing cleaning, catering, laundry, security and maintenance to assets in healthcare, education, government and defense.

Downer says he will “vigorously defend” the proceedings. “Downer is committed to best practices in governance and risk management and continues to invest heavily in its compliance systems and processes,” said Peter Tompkins, CEO of Downer.

Downer EDI shares closed down 5.95% at $5.37, while Ventia shares fell 23% to $3.33.

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