LA Private

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 initiated by the Australian Competition and Consumer Commission (ACCC).

The ACCC’s allegations relate to conduct in 2019 and 2020 concerning estate maintenance services provided to the Department of Defence. The ACCC claims that Spotless, along with two other service companies — BGIS and Ventia — engaged in anti-competitive behaviour in the delivery of these services.

Spotless is a provider of outsourced facility management services, delivering cleaning, catering, laundry, security and asset maintenance across healthcare, education, government and defence.

Downer maintains that it will “vigorously defend” the proceedings. “Downer is committed to best practice governance and risk management and continues to invest heavily in its compliance systems and processes,” said Downer CEO Peter Tompkins.

Shares closed 5.95% lower at $5.37.