ACCC alleges price-fixing cartel and boycotts in abalone industry

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Melbourne, alleging the company Australian Abalone Pty Ltd, a number of licensed Victorian abalone quota holders and other persons have contravened the price-fixing and boycott prohibitions in Trade Practices Act 1974 or the Competition Code of Victoria*.

The ACCC alleges that that in 2004 and 2005, Australian Abalone Pty Ltd, the abalone quota holders and others made and gave effect to the alleged anti-competitive agreements.

The ACCC is seeking the following court orders:

• declarations that the conduct contravened section 45 of the Act or the Code
• injunctions restraining similar conduct in the future
• pecuniary penalties against each of the nineteen respondents
• trade practices training or compliance programs by some of the respondents, and
• costs.

The matter was first listed before Justice Merkel on Friday, 9 December 2005 for a directions hearing. A further directions hearing is set for 17 March 2006.

*The Competition Code of Victoria is a Victorian Government law, which forms a part of a single National Competition Policy that applies across Australia. Under the Trade Practices Act, the ACCC is often restricted to instituting proceedings against corporations for anti-competitive conduct; under the code, the ACCC can institute proceedings for such conduct directly against individuals.