Federal Court makes interim declarations of anticompetitive agreements
Wednesday 18 September 2013 @ 9.44 a.m. | Trade & Commerce
The Federal Court has made interim declarations in the matter of ACCC v Cement Australia Pty Ltd & Ors, which involved numerous alleged breaches of the competition provisions of the Competition and Consumer Act 2010 (the Act).
Background
The matter relates to contracts which were entered into with four power stations located in South East Queensland between 2002 and 2006 to acquire flyash (a by-product of burning black coal at electricity generating power stations), and which the ACCC alleged were entered into for the purpose, and with the effect, of preventing competition in the relevant market.
The Verdict
Greenwood J found a number of contraventions of s 45 of the Act. Section 45 prohibits entering into, and giving effect to, contracts and arrangements that have the purpose or effect of substantially lessening competition.
The ACCC had also alleged this conduct contravened s 46 of the Act, which relates to the misuse of market power. His Honour did not find the alleged contraventions of section 46 to be established.
ACCC Chairman Rod Sims said:
“This is an important judgment for the ACCC on a significant competition case. We are particularly pleased with the interim declarations concerning the making of, and giving effect to, anticompetitive agreements which had the purpose and effect of substantially lessening competition...The ACCC is still considering the judgment, and we will be able to comment further when the confidentiality issues are resolved, and the judgment becomes public.”
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Sources:
ACCC Media Release
