Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd [2006] FCA 826

Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd [2006] FCA 826

Woolworths Ltd, in two Campbelltown and Tweed Heads episodes, included exclusionary provisions in settlement deeds for the purpose of preventing supply of takeaway liquor to particular classes of persons and thereby contravened s 45(2) of the Trade Practices Act. Further, Woolworths Ltd's purpose in four episodes (Campbelltown, Rockdale/Arncliffe, Tweed Heads) in entering and giving effect to the settlement deeds was to substantially lessen competition in relevant local markets for the supply of packaged liquor, also contravening s 45(2).

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Liquorland (Australia) Pty Ltd; Second Respondent: Woolworths Ltd
Jurisdiction
Australia
Judgment Date
30 June 2006
Procedural Posture
Civil / Final Judgment
Outcome
Declaratory relief is granted in favour of the applicant regarding Woolworths Ltd's contraventions; form of final orders and any penalty orders to be settled following further submissions. Case is stood over for hearing on orders and directions.
Legal Topics
Exclusionary Provisions, Substantial Lessening of Competition, Deeds of Settlement, Retail Packaged Liquor Markets, Purpose Under Trade Practices Act, Market Definition
Competition Law Trade Practices Exclusionary Provisions Substantial Lessening of Competition Deeds of Settlement Retail Packaged Liquor Markets Purpose Under Trade Practices Act Market Definition

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Parties

Australian Competition and Consumer Commission

Applicant

Liquorland (Australia) Pty Ltd

First Respondent

Woolworths Ltd

Second Respondent

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether deeds settling objections to liquor licence applications contained exclusionary provisions within the meaning of s 4D of the Trade Practices Act 1974 (Cth)
  2. 2 Whether the purpose of the provisions was to substantially lessen competition under s 45(2) of the Trade Practices Act 1974 (Cth)
  3. 3 What constitutes relevant market definition for assessing competition effects

Ratio Decidendi

Woolworths Ltd, in two Campbelltown and Tweed Heads episodes, included exclusionary provisions in settlement deeds for the purpose of preventing supply of takeaway liquor to particular classes of persons and thereby contravened s 45(2) of the Trade Practices Act. Further, Woolworths Ltd's purpose in four episodes (Campbelltown, Rockdale/Arncliffe, Tweed Heads) in entering and giving effect to the settlement deeds was to substantially lessen competition in relevant local markets for the supply of packaged liquor, also contravening s 45(2).

Court Disposition

Declaratory relief is granted in favour of the applicant regarding Woolworths Ltd's contraventions; form of final orders and any penalty orders to be settled following further submissions. Case is stood over for hearing on orders and directions.

Orders

  • Relief for contraventions of s 45(2)(a)(i) and (b)(i) in respect of the Ettamogah and Global Beer episodes, and s 45(2)(a)(ii) and (b)(ii) in respect of all four episodes granted.
  • Commission to propose specific relief and orders; directions hearing set for further argument.