Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd (ACN 007 512 419) [2005] FCA 683

Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd (ACN 007 512 419) [2005] FCA 683

Liquorland's entry into the agreements containing exclusionary provisions constituted five contraventions of s 45(2)(a)(i) of the Trade Practices Act 1974 (Cth). Pecuniary penalties totaling $4,750,000 (with $950,000 payable) and a three-year injunction restraining similar conduct are appropriate remedies in light of agreed facts, absence of prior breaches, the nature and seriousness of the conduct, and consent of the parties.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Liquorland (Australia) Pty Ltd (ACN 007 512 419); Second Respondent: Woolworths Ltd (ACN 000 0145 675)
Jurisdiction
Australia
Judgment Date
31 May 2005
Procedural Posture
Civil / Relief/orders Following Admissions by One Respondent; Proceedings Continuing Against Another Respondent
Outcome
Relief granted by consent: injunction, pecuniary penalty, discontinuance of proceedings against first respondent (with conditions, including no costs and no further proceedings); declaratory relief not granted.
Legal Topics
Exclusionary Provisions, Contravention of Trade Practices Act, Pecuniary Penalties, Injunctions, Discontinuance, Relief Against One of Multiple Respondents
Competition Law Trade and Commerce Exclusionary Provisions Contravention of Trade Practices Act Pecuniary Penalties Injunctions Discontinuance Relief Against One of Multiple Respondents

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Parties

Australian Competition and Consumer Commission

Applicant

Liquorland (Australia) Pty Ltd (ACN 007 512 419)

First Respondent

Woolworths Ltd (ACN 000 0145 675)

Second Respondent

Procedural Posture

Civil / Relief/orders Following Admissions by One Respondent; Proceedings Continuing Against Another Respondent

Legal Issues

  1. 1 Whether the entry into agreements containing exclusionary provisions contravened s 45(2)(a)(i) of the Trade Practices Act 1974 (Cth)
  2. 2 Appropriateness and quantum of pecuniary penalties
  3. 3 Propriety of granting limited injunction

Ratio Decidendi

Liquorland's entry into the agreements containing exclusionary provisions constituted five contraventions of s 45(2)(a)(i) of the Trade Practices Act 1974 (Cth). Pecuniary penalties totaling $4,750,000 (with $950,000 payable) and a three-year injunction restraining similar conduct are appropriate remedies in light of agreed facts, absence of prior breaches, the nature and seriousness of the conduct, and consent of the parties.

Court Disposition

Relief granted by consent: injunction, pecuniary penalty, discontinuance of proceedings against first respondent (with conditions, including no costs and no further proceedings); declaratory relief not granted.

Orders

  • First respondent restrained for three years from entering into or giving effect to certain exclusionary agreements relating to liquor licence applicants in NSW, with exceptions for certain submissions to the Licensing Court.
  • First respondent to pay the Commonwealth a pecuniary penalty of $950,000.