Australian Competition and Consumer Commission v Construction, Forestry, Mining and Energy Union

In the Federal Court of Australia, the Australian Competition and Consumer Commission (ACCC) brought proceedings against the Construction, Forestry, Mining and Energy Union (CFMEU) and Bovis Lend Lease Limited (BLL). The case concerned allegations of anti-competitive behaviour involving agreements between BLL and the CFMEU that were intended to restrict BLL's ability to procure building and construction subcontracting services from parties other than those approved by the CFMEU. The ACCC sought penalties, injunctive relief, and costs against BLL.

The legal issues before the court included whether BLL's agreements with the CFMEU contained provisions that were designed to prevent or hinder BLL from acquiring construction services from suppliers other than those approved by the CFMEU, and if so, whether these agreements contravened the competition provisions of the Trade Practices Act 1974 (Cth). The court also needed to determine the appropriate remedies, including pecuniary penalties, injunctive relief, and costs.

The court found that BLL had entered into agreements with the CFMEU that contained provisions aimed at preventing or hindering BLL from acquiring construction services from suppliers other than those approved by the CFMEU. These agreements were in breach of the competition provisions of the Trade Practices Act. The court accepted that BLL's actions were deliberate and constituted serious misconduct. Consequently, the court ordered BLL to pay a pecuniary penalty of $100,000, imposed an injunctive relief preventing BLL from entering into similar agreements with the CFMEU for four years, and ordered BLL to pay the ACCC's costs of $110,000. The court also noted that BLL had provided an undertaking to the ACCC on 25 September 2007, which was accepted by the ACCC and annexed to the orders.