Wednesday 15 August 2018

When is a cartel not a cartel - when it is exclusive dealing




ACCC has settled with Palram and Ampelite for $5.5 million.  Interestingly the ACCC actually settled on the basis of exclusive dealing and not cartel conduct.  This is surprising given all the hullabaloo which the ACCC made when it commenced the case stating that the companies had engaged in cartel conduct: "The ACCC alleges that over a five year period from 2008 until 2013, these companies made and gave effect to a number of cartel arrangements which had the purpose of preventing or restricting the supply of polycarb to retailers." So it seems to me that the ACCC took legal proceedings believing that there were a number of cartel arrangements, but then failed to obtain the evidence to prove the existence of those arrangements. Accordingly, the ACCC had to settle on the vertical agreements. Looks like a pretty major evidentiary fail for the ACCC.  The ACCC  should have the evidence of the alleged horizontal agreements locked in prior to the commencement of the legal proceedings   The ACCC also noted in its media release the anti-overlap provisions of the Competition and Consumer Act 2010 which effectively state that if conduct can be characterised as both horizontal (more serious) and vertical (less serious), the ACCC has to pursue the conduct as vertical.

https://www.accc.gov.au/media-release/court-orders-penalties-of-55m-against-palram-and-ampelite-for-exclusive-dealing

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