Tertiary education program

Penalties and remedies

Financial penalties

A business that breaches the exclusive dealing prohibition may be ordered to pay a penalty of up to the greater of:

  • $10 million
  • three times the benefit gained by the business as a result of the breach, or
  • 10 per cent of the business's annual turnover.

Individuals personally involved in the contravention could also face penalties of up to $500 000.

Damages (compensation order)

In addition to the imposition of penalties, businesses that breach competition laws may be required to pay compensation to the victims of the anti-competitive conduct. For example, a supplier or customer who has suffered damage as a result of the exclusive dealing is able to sue the corporation to recover the loss. Compensation can also be recovered from individuals running the company if they were involved in the contravention.

Other penalties and remedies

The court also has the power to make other orders to overcome losses, such as an order that varies the terms of supply contracts.

A person or business that contravenes competition laws may be subject to a range of other court orders, including:

  • Injunctions: these are a court order that requires a business or individual to do or refrain from doing particular acts.
  • Disqualification orders: on the application of the ACCC, the court may order that a person involved in a breach of the CCA be disqualified from managing a corporation for such a period as it considers appropriate.