Case:

The ACCC alleged Visy had contravened section 45 of the Trade Practices Act 1974 which deals with anti-competitive agreements. Visy had attempted to reach an agreement to prevent a competitor from taking Visy¡¦s customers but claimed this was not unlawful because of a technicality in section 45(6) the Act.

Key Words:

Trade practices, anti-competitive agreements

Reference:

Visy Paper Pty Limited & Ors v ACCC [2002] ATPR 41-952

Industry:

Recyclable waste paper

Relevant Laws:

Section 45(2)(a)(i) of the Trade Practices Act 1974

Summary:

The High Court found that Visy Paper Pty Ltd had contravened section 45 of the Trade Practices Act 1974 which deals with anti-competitive agreements.

Visy had attempted to reach an agreement to prevent its competitor, Northern Pacific Paper Pty Ltd, a waste paper collection company, from taking Visy¡¦s customers but claimed this was not unlawful because of a technicality in section 45(6) the Act.

By a 5:1 majority, the High Court agreed with the Full Federal Court that the conduct was illegal. In a joint judgment, their Honours Chief Justice Gleeson and Justices McHugh, Gummow and Hayne said:

The case represents the first time the scope of section 45(6) has been comprehensively considered by the High Court. The decision is a significant contributor to clarifying the operation of that section.

Judgment reserved.

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