Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd

The Australian Competition and Consumer Commission (ACCC) filed a case against Liquorland (Australia) Pty Ltd, which was heard by the Federal Court of Australia. The dispute centres on allegations that Liquorland entered into agreements that restricted the supply of take-away liquor in New South Wales. The ACCC claimed that these agreements contravened section 45(2)(a)(i) of the Competition and Consumer Act 2010 (Cth) by preventing, restricting, or limiting competition in the market for the supply of take-away liquor. The case required the court to determine whether Liquorland’s conduct constituted a breach of the Act and, if so, what remedies should be imposed.

The court examined the nature of the agreements between Liquorland and various parties, assessing whether these agreements had the effect of restricting competition in the market for the supply of take-away liquor. It found that the agreements did indeed restrict competition and constituted anti-competitive practices under the Act. The court also considered the purpose behind the agreements and concluded that they were made for the purpose of preventing, restricting, or limiting competition. This finding was critical in determining that Liquorland had contravened the Act.

As a result of the court’s findings, Liquorland was subject to significant penalties and injunctive relief. The court imposed pecuniary penalties totalling $4,750,000, reduced to $950,000 by way of a discount for early admission of liability. Additionally, Liquorland was restrained from entering into similar agreements for three years and was ordered to contribute $250,000 towards the ACCC’s costs. The proceedings were discontinued on the condition that the ACCC would not pursue any further claims against Liquorland related to the matters in the further amended statement of claim.