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Competition and Consumer Act 2010 (Cth)

Section 45AA Simplified Outline

Note: The Harper Reforms came into operation on 6 November 2017. This section has been re-numbered. It was originally numbered s 44ZZRA. This page reflects the renumbering brought about by the passage of the Competition and Consumer Amendment (Competition Policy Reform) Act 2017. Please visit section 44ZZRA for the provision immediately prior to the commencement of the Harper Reforms.

 

The provision

The following is a simplified outline of this Division:

  • This Division sets out parallel offences and civil penalty provisions relating to cartel conduct.
  • A corporation must not make, or give effect to, a contract, arrangement or understanding that contains a cartel provision.
  • A cartel provision is a provision relating to:

    (a) price‑fixing; or

    (b) restricting outputs in the production and supply chain; or

    (c) allocating customers, suppliers or territories; or

    (d) bid‑rigging;

by parties that are, or would otherwise be, in competition with each other.

 

Legislative history

Amended Competition and Consumer Amendment (Competition Policy Reform) Act 2017 (Act 114 of 2017)

The content of this provision did not change - it was simply renumbered

Introduced by Trade Practices Amendment (Cartel Conduct and Other Measures) Act 2009

Operative: 24 July 2009

 

Commentary

The insertion of this provision was part of the package of reforms introducing criminal penalties for cartel conduct. The reforms also created a parallel civil cartel prohibition, replacing the former s 45A which dealt directly with price-fixing.

The reforms were initially recommend by the Dawson Committee as part of its 2002-2003 inquiry into the Competition Law provisions of the Trade Practices Act.

See further information and resources on the cartel page.