Australian Competition and Consumer Commission v IPM Operation and Maintenance Loy Yang Pty Ltd (No 3) [2007] FCA 144

Australian Competition and Consumer Commission v IPM Operation and Maintenance Loy Yang Pty Ltd (No 3) [2007] FCA 144

Edison contravened ss 45E(3) and 45EA of the Trade Practices Act 1974 (Cth) by entering into an arrangement with the CEPU restricting engagement of contractors on the basis of certified agreements, and giving effect to that arrangement. A penalty of $120,000 is within the proper range given parity with the penalty imposed on the CEPU, Edison's cooperative conduct, admissions, absence of prior contraventions, and the public policy favouring prompt resolution.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: IPM Operation and Maintenance Loy Yang Pty Ltd (formerly known as Edison Mission Operation and Maintenance Loy Yang Pty Ltd) (ACN 055 563 696); Second Respondent: Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
Jurisdiction
Australia
Judgment Date
09 March 2007
Procedural Posture
Civil / Final Judgment on Settlement and Penalty
Outcome
Pecuniary penalty imposed on First Respondent; costs ordered; declarations made as to contraventions.
Legal Topics
Restrictive Trade Practices, Pecuniary Penalty, Arrangements Affecting Acquisition of Goods or Services, Determination of Penalty, Parity Principle
Competition Law Restrictive Trade Practices Pecuniary Penalty Arrangements Affecting Acquisition of Goods or Services Determination of Penalty Parity Principle

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Australian Competition and Consumer Commission

Applicant

IPM Operation and Maintenance Loy Yang Pty Ltd (formerly known as Edison Mission Operation and Maintenance Loy Yang Pty Ltd) (ACN 055 563 696)

First Respondent

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

Second Respondent

Procedural Posture

Civil / Final Judgment on Settlement and Penalty

Legal Issues

  1. 1 Did the First Respondent contravene s 45E(3) and s 45EA of the Trade Practices Act 1974 (Cth) by entering into and giving effect to an arrangement affecting acquisition of services?
  2. 2 What is the appropriate pecuniary penalty pursuant to s 76 for the admitted contraventions of Part IV of the Act?

Ratio Decidendi

Edison contravened ss 45E(3) and 45EA of the Trade Practices Act 1974 (Cth) by entering into an arrangement with the CEPU restricting engagement of contractors on the basis of certified agreements, and giving effect to that arrangement. A penalty of $120,000 is within the proper range given parity with the penalty imposed on the CEPU, Edison's cooperative conduct, admissions, absence of prior contraventions, and the public policy favouring prompt resolution.

Court Disposition

Pecuniary penalty imposed on First Respondent; costs ordered; declarations made as to contraventions.

Orders

  • First Respondent declared to have contravened s 45E(3) and s 45EA of the Trade Practices Act 1974 (Cth).
  • First Respondent to pay a pecuniary penalty of $120,000 to the Commonwealth of Australia by 9 March 2007.