Origin Energy LPG Limited & Anor v Bestcare Foods Limited & Anor

Origin Energy LPG Limited and another party (the applicants) sought judicial review of a decision by the Australian Competition and Consumer Commission (ACCC) to grant authorisation to Bestcare Foods Limited and another party (the respondents) to engage in certain conduct. The ACCC's decision permitted the respondents to enter into exclusive supply agreements for the supply of LPG to their respective businesses. The applicants, who were competitors of the respondents in the LPG market, argued that the ACCC's decision was flawed. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the ACCC had erred in law in its assessment of the likely public benefit and detriment arising from the proposed exclusive supply agreements. Specifically, the applicants contended that the ACCC failed to properly consider the potential anti-competitive effects of the agreements and the consequent detriment to competition in the LPG market. They argued that the ACCC's reasoning did not adequately demonstrate that the claimed public benefits outweighed the likely detriments.

Gummow and Heydon JJ found that the ACCC's decision-making process had been vitiated by an error of law. Their Honours held that the ACCC had not adequately discharged its statutory obligation under section 90(7) of the Trade Practices Act 1974 (Cth) to consider all relevant matters, including the potential for the exclusive supply arrangements to substantially lessen competition. The Court concluded that the ACCC's assessment of the public benefit was speculative and that it had failed to give sufficient weight to the demonstrable detriments to competition.

The High Court accordingly made orders quashing the ACCC's decision to grant authorisation.