Australian Competition & Consumer Commission v Fila Sport Oceania Pty Ltd (Administrators Appointed) [2004] FCA 376

Australian Competition & Consumer Commission v Fila Sport Oceania Pty Ltd (Administrators Appointed) [2004] FCA 376

FILA deliberately used its market power in wholesale AFL On Field licensed apparel and supplied on conditions that retailers not stock competitors' Team Spirit apparel, in contravention of ss 46 and 47. The conduct was serious, blatant, continued for a substantial period despite warnings and caused significant harm...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
02 April 2004
Procedural Posture
Proceeding for Pecuniary Penalties for Contraventions of Ss 46 and 47 of the Trade Practices Act 1974 (cth) / Penalty Judgment Against the First Respondent After Leave to Withdraw Its Defence; Proceeding Continuing Against the Second Respondent
Outcome
Pecuniary penalty imposed on the first respondent; injunctions and declarations adjourned pending determination of the proceeding against the second respondent.
Legal Topics
['misuse of Market Power' 'exclusive Dealing' 'pecuniary Penalties' 'deterrence' 'voluntary Administration' 'afl Licensed Apparel']
['competition and Consumer Law' 'corporations Law'] ['misuse of Market Power' 'exclusive Dealing' 'pecuniary Penalties' 'deterrence' 'voluntary Administration' 'afl Licensed Apparel']

Source-derived case record

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Procedural Posture

Proceeding for Pecuniary Penalties for Contraventions of Ss 46 and 47 of the Trade Practices Act 1974 (cth) / Penalty Judgment Against the First Respondent After Leave to Withdraw Its Defence; Proceeding Continuing Against the Second Respondent

Legal Issues

  1. 1 ['What pecuniary penalty should be imposed on FILA for contraventions of ss 46 and 47 of the Trade Practices Act 1974 (Cth).' "Whether FILA's insolvency and likely winding-up were relevant to the penalty to be imposed." 'Whether FILA being part of a multinational group was a relevant aggravating consideration.' 'Whether FILA should receive any discount for cooperation with the ACCC.']

Ratio Decidendi

FILA deliberately used its market power in wholesale AFL On Field licensed apparel and supplied on conditions that retailers not stock competitors' Team Spirit apparel, in contravention of ss 46 and 47. The conduct was serious, blatant, continued for a substantial period despite warnings and caused significant harm to competitors and retailers. FILA's insolvency and likely winding-up did not reduce the penalty, its multinational ownership was not a relevant aggravating factor on the facts, and no cooperation discount was warranted. A pecuniary penalty of $3 million was appropriate for deterrence.

Court Disposition

Pecuniary penalty imposed on the first respondent; injunctions and declarations adjourned pending determination of the proceeding against the second respondent.

Orders

  • ['The applicant have leave to proceed against the first respondent.' 'The first respondent pay to the Commonwealth a pecuniary penalty of $3 million.' 'The question of injunctions and declarations be adjourned pending determination of the proceeding against the second respondent.' 'The first respondent pay to the...