Australian Competition and Consumer Commission v Liqourland (Australia) Pty Limited [2006] FCA 1799

Australian Competition and Consumer Commission v Liqourland (Australia) Pty Limited [2006] FCA 1799

Penalties must reflect seriousness of the conduct having regard to the purpose of substantially lessening competition, parity with penalties imposed on related parties, and specific and general deterrence. Each contravening episode was a serious contravention of s 45 despite lack of proven actual effect; the conduct was deliberate albeit not intentionally unlawful, and substantial penalties are warranted for each episode.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Liquorland (Australia) Pty Limited; Second Respondent: Woolworths Ltd
Jurisdiction
Australia
Judgment Date
22 December 2006
Procedural Posture
Civil Penalty Proceeding / Judgment on Relief/penalty Following Findings of Contravention
Outcome
Pecuniary penalty and costs orders; injunctive relief deferred for further submissions.
Legal Topics
Anti Competitive Agreements, Pecuniary Penalties, Section 45 Trade Practices Act, Injunctions, Deterrence
Competition Law Trade Practices Anti Competitive Agreements Pecuniary Penalties Section 45 Trade Practices Act Injunctions Deterrence

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Parties

Australian Competition and Consumer Commission

Applicant

Liquorland (Australia) Pty Limited

First Respondent

Woolworths Ltd

Second Respondent

Procedural Posture

Civil Penalty Proceeding / Judgment on Relief/penalty Following Findings of Contravention

Legal Issues

  1. 1 Appropriate pecuniary penalty for contraventions of s 45 Trade Practices Act 1974 (Cth)
  2. 2 Whether injunctive relief should be granted
  3. 3 Assessment of seriousness of the contravention

Ratio Decidendi

Penalties must reflect seriousness of the conduct having regard to the purpose of substantially lessening competition, parity with penalties imposed on related parties, and specific and general deterrence. Each contravening episode was a serious contravention of s 45 despite lack of proven actual effect; the conduct was deliberate albeit not intentionally unlawful, and substantial penalties are warranted for each episode.

Court Disposition

Pecuniary penalty and costs orders; injunctive relief deferred for further submissions.

Orders

  • Woolworths Ltd to pay $1,750,000 for each episode of contravention (total $7,000,000) to the Commonwealth of Australia.
  • Woolworths Ltd restrained from relying on or enforcing the agreements in question.