Competition and Consumer Law Update

Welcome to the final edition of the Deacons Competition & Consumer Law Update. On 1 January 2010, the Norton Rose group and Deacons Australia are joining forces. We look forward to presenting our next update as the first edition of the Norton Rose Australia Competition & Consumer Law Update.

In this edition, we:

    * consider the very real implications that cross-directorships across companies might have, and the possibility of coordinated effects muting competitive rivalry between firms, when seeking merger clearance approval from the ACCC
    * provide an update of the Commonwealth Consumers Affairs Council's review into the adequacy of existing laws imposing statutory terms and conditions into consumer contracts; and
    * review the ACCC's litigation against Cabcharge alleging misuse of market power.

Coordinated effects in mergers and acquisitions – Considering the implications of cross directorships

By Nick McHugh and Belinda Harvey
Is your company contemplating a merger or increasing its shareholding in a competitor? Is it embarking on a joint venture with a competitor? Is there talk of acquiring an interest in an entity that operates upstream or downstream to your business operations? If a member of your board also sits on the board of a competitor, or a substitute or complementary company, an assessment of the implications of cross directorships and the resulting coordinated effects are integral in the initial stages of any proposed deal.
Statutory implied terms, what are your rights?

By Claire Forster
A number of concerns have been expressed with the existing statutory implied terms regime in Australia. As a result, the Commonwealth Consumer Affairs Advisory Council is currently undertaking a review of the existing laws on implied terms.
ACCC Hails Down Cabcharge

By Marianne Saba
The Australian Competition and Consumer Commission (ACCC) has started legal proceedings in the Federal Court against Cabcharge over claims it has abused its market power. In its Statement of Claim filed with the Federal Court, the ACCC alleges Cabcharge has breached section 45 and 46 of the Trade Practices Act 1974 (Cth). These sections prohibit corporations from using their substantial degree of market power to engage in conduct for certain anti-competitive purposes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.