Trade Practices Commission v Autoglass Pty Ltd & Ors [1988] FCA 375

Trade Practices Commission v Autoglass Pty Ltd & Ors [1988] FCA 375

The respondents, being major suppliers, entered into and maintained anti-competitive arrangements concerning the fixing of prices and discounts for replacement windscreens, in contravention of s 45(2)(a)(ii) of the Trade Practices Act 1974. Although little market effect resulted, the seriousness, duration, and senior management involvement warranted significant penalties. Injunctions were appropriate to restrain future conduct.

Parties
Applicant: Trade Practices Commission; First Respondent: Australian Autoglass Pty Limited; Second Respondent: O'Brien Glass Industries Limited; Third Respondent: Windscreens O'Brien (Wholesale) Pty Limited; Fourth Respondent: Hamilfair Pty Limited; Fifth Respondent: Nielsen & Moller Pty Limited
Jurisdiction
Australia
Judgment Date
19 July 1988
Procedural Posture
Application for Pecuniary Penalties and Injunctions / Final Judgment
Outcome
Pecuniary penalties imposed on respondents; injunctions granted; costs awarded to applicant.
Legal Topics
Anti Competitive Arrangement, Price Fixing, Pecuniary Penalty, Injunctions, Trade Practices Act 1974
Competition Law Anti Competitive Arrangement Price Fixing Pecuniary Penalty Injunctions Trade Practices Act 1974

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Parties

Trade Practices Commission

Applicant

Australian Autoglass Pty Limited

First Respondent

O'Brien Glass Industries Limited

Second Respondent

Windscreens O'Brien (Wholesale) Pty Limited

Third Respondent

Hamilfair Pty Limited

Fourth Respondent

Nielsen & Moller Pty Limited

Fifth Respondent

Procedural Posture

Application for Pecuniary Penalties and Injunctions / Final Judgment

Legal Issues

  1. 1 Whether the respondents contravened s 45(2)(a)(ii) of the Trade Practices Act 1974 by making/entering into arrangements with the purpose or effect of substantially lessening competition
  2. 2 Factors affecting the determination of pecuniary penalties and appropriateness of injunctive relief

Ratio Decidendi

The respondents, being major suppliers, entered into and maintained anti-competitive arrangements concerning the fixing of prices and discounts for replacement windscreens, in contravention of s 45(2)(a)(ii) of the Trade Practices Act 1974. Although little market effect resulted, the seriousness, duration, and senior management involvement warranted significant penalties. Injunctions were appropriate to restrain future conduct.

Court Disposition

Pecuniary penalties imposed on respondents; injunctions granted; costs awarded to applicant.

Orders

  • First respondent to pay to the Commonwealth a pecuniary penalty of $65,000.
  • Second respondent to pay to the Commonwealth a pecuniary penalty of $65,000.