What activities are exempt from cartel prohibitions?

Very specific exceptions apply to the cartel regime, including circumstances where:

• the ACCC has authorised the conduct because the public benefit outweighs any public detriment which would result from the conduct
• businesses have formed certain joint ventures.

Businesses should seek independent advice before relying on these exemptions as an excuse for cartel conduct.

Types of exemptions

• Agreements between related corporate bodies
  Agreements solely between related corporate bodies will not fall within the cartel offences or civil prohibitions.
• ‘Anti-overlap’ provisions
• Authorisations
• Buying groups
• Collective bargaining
• Joint ventures

Examples of exemptions

Levy on bricks

Several brick manufacturers, through their industry associations, proposed to impose a small levy on bricks. Although the levy would be passed on to consumers, it would fund schemes designed to alleviate the current shortage of skilled bricklayers in Australia. The brick manufacturers lodged an application for authorisation with the ACCC. The ACCC considered that the public benefits flowing from the proposal outweighed any anti-competitive detriment, and authorised the scheme.

Fixed-price funerals

Some funeral directors in Western Australia sought authorisation to agree to offer fixed-price discounted prepaid funerals to pensioners. The ACCC recognised that this scheme would allow pensioners to obtain substantially discounted funeral services, and authorised it for five years.

Further Information