Dr' Niloufer Selvadurai

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UNIT 2 - CONTRACTS, ARRANGEMENTS OR
UNDERSTANDINGS THAT RESTRICT DEALINGS OR AFFECT
COMPETITION

• Dr. Niloufer Selvadurai

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Section 45

• Aim
• Eastern Express Pty Ltd v General Newspapers Pty
  Ltd

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2.1 Section 45

• Section 45(2)(a)(i) - A corporation shall not
  make a contract or arrangement or arrive at an
  understanding if it contains an exclusionary
  provision.
• Section 45(2)(a)(ii) - A corporation shall not
  make a contract or arrangement or arrive at an
  understanding if a provision in it has the
  purpose or is likely to have the effect of
  substantially lessening competition.

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2.2 Contract, arrangement or understanding

• Contract
• Not defined in act
• General principles of contract law

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2.2 Contract, arrangement or understanding

• ACC V Amcor Printing Papers Group Ltd (2000) 169
  ALR 344
• Australian Competition and Consumer Commission v
  CC (NSW) Pty Ltd (1999) 92 FCR 375.
• ACCC v Amcor Printing Paper Groups Ltd

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2.3 Parallel conduct

• TPC v E-mail Ltd (1980) 43 FLR 383
• Dowling v Dalgety Aust Ltd (1992) 34 FCR 109

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2.4 Exclusionary provision

• Section 4D
• Necessity to identify boycott of some other
  person or class of persons
• News Ltd v Australian Rugby League Football
  League Ltd (1996) 64 FCR 410

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2.5 Has or is likely to

• TPC v TNT Management Pty Ltd (1985) 6 FCR 1
• Tillmans Butcheries Pty Ltd v Australasian Meat
  Industry Employees Union (1979) 42 FLR 331
• Monroe Topple Associates Pty Ltd v ICA (Aust)
  (2002) 122 FCR 110

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2.6 Purpose

• News Ltd v Australian Rugby League Football
  League Ltd (1996) 64 FCR 410
• Dowling v Dalgety Australia Ltd (1992) 34 FCR 109

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2.7 Effect

• Cumulative and individual effect
• Re Concrete Carters Association (Vic) (1977) 31
  FLR 193
• Ah Toy Pty Ltd v Thiess Toyota Pty Ltd (1980) 30
  ALR 271

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2.8 Substantially Lessening Competition

• ASX Operations Pty Ltd v Pont Data Australia Pty
  Ltd v (1990) 27 FCR 460
• Dandy Power Equipment Pty Ltd v Mecury Marine Pty
  Ltd (1982) 64 FLR 238

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Substantial

• Rural Press Ltd v ACCC (2002) 118 FCR 236
• Radio 2UE Sydney Pty Ltd v Stereo FM Pty Ltd
  (1982) 62 FLR 437

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Lessening

• Eastern Express Ltd v General Newspapers Pty Ltd
  (1991) 30 FCR 385

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Competition

• Re Queensland Co-Operative Milling Association
  Ltd (1976) 25 FLR 169
• Relevance of competitive strength
• Arrangements with weaker competitor

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2.9 Exclusionary provisions

• Categories of excluded matters
• Prevention of overlap between ss 45 and 47 (s
  45(6))

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2.10 Penalties

• Pecuniary penalties under s 76
• Additionally, damages and injunction available

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2.11 Illustrative Cases

• ACCC v Tyco Australia Pty Ltd (2000) ATPR 41-740
• ACCC v Universal Music Australia Pty Ltd 2000
  FCA 1800
• Pont Data Australia Pty Ltd v ASX Operations Pty
  Ltd (1990) 21 FCR 385