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.