Australian Competition and Consumer Commission v Universal Music Australia Pty Ltd (No 2)

In the case of Australian Competition and Consumer Commission v Universal Music Australia Pty Ltd (No 2), the Australian Competition and Consumer Commission (ACCC) brought proceedings against Universal Music Australia Pty Ltd and Warner Music Australia Pty Ltd, along with several individuals associated with the companies, for breaches of the Competition and Consumer Act 2010. The primary dispute centred around the companies' refusal to supply compact discs containing recorded music to retailers who had acquired non-infringing copies from alternative suppliers, which was deemed anti-competitive conduct. The case was heard by the Federal Court of Australia.

The court was tasked with determining the appropriate pecuniary penalties to be imposed on the respondents, both the corporations and the individuals, and whether injunctive relief should be granted. Key legal issues included the appropriate level of penalty considering the nature and extent of the contraventions, the impact of the companies' compliance programs, and the degree of co-operation shown by the respondents. Additionally, the court had to balance the objectives of deterrence and proportionality in penalty imposition.

The court concluded that while the contraventions were serious, the companies had implemented compliance programs and had ceased the contentious conduct upon being notified by the ACCC. Although the respondents did not cooperate to the extent of admitting liability or assisting in the investigation, they did discontinue the offending conduct promptly. The court found that the maximum penalty was not necessarily the appropriate amount, considering the uncertain operation of the law at the time of the contraventions. The court imposed a penalty of $450,000 on Universal Music Australia Pty Ltd, reflecting the seriousness of the conduct but also considering the mitigating factors. For Warner Music Australia Pty Ltd, the court imposed a penalty of $45,000. Individual penalties ranged from $45,000 to $50,000, taking into account each person's level of involvement and financial circumstances.

The court also determined that injunctive relief was necessary to prevent future contraventions, imposing a permanent restraint on Universal Music Australia Pty Ltd from refusing to supply compact discs on the specified grounds. The court awarded costs to the ACCC, with varying percentages to be borne by the respondents, and dismissed the proceedings against one of the individual respondents due to lack of involvement.