Trade Practices Act 1974 (Cth)

 

Section 45A

Price fixing

⚠️ Historical only

[Note that this provision was repealed by the, effective 24 July 2009. Reproduced below is s 45A as it existed immediately prior to its repeal.]

Section 45A 
Contracts, arrangements or understandings in relation to prices

(1)  Without limiting the generality of section 45, a provision of a contract, arrangement or understanding, or of a proposed contract, arrangement or understanding, shall be deemed for the purposes of that section to have the purpose, or to have or to be likely to have the effect, of substantially lessening competition if the provision has the purpose, or has or is likely to have the effect, as the case may be, of fixing, controlling or maintaining, or providing for the fixing, controlling or maintaining of, the price for, or a discount, allowance, rebate or credit in relation to, goods or services supplied or acquired or to be supplied or acquired by the parties to the contract, arrangement or understanding or the proposed parties to the proposed contract, arrangement or understanding, or by any of them, or by any bodies corporate that are related to any of them, in competition with each other.

[Section 45A(2) repealed 2006; section 46A(3) repealed 1995]

(4)  Subsection (1) does not apply to a provision of a contract, arrangement or understanding, or of a proposed contract, arrangement or understanding, being a provision:

(a)  in relation to the price for goods or services to be collectively acquired, whether directly or indirectly, by parties to the contract, arrangement or understanding or by proposed parties to the proposed contract, arrangement or understanding; or

(b)  for the joint advertising of the price for the re-supply of goods or services so acquired.


(5)  
For the purposes of this Act, a provision of a contract, arrangement or understanding, or of a proposed contract, arrangement or understanding, shall not be taken not to have the purpose, or not to have or to be likely to have the effect, of fixing, controlling or maintaining, or providing for the fixing, controlling or maintaining of, the price for, or a discount, allowance, rebate or credit in relation to, goods or services by reason only of:

(a)  the form of, or of that provision of, the contract, arrangement or understanding or the proposed contract, arrangement or understanding; or

(b)  any description given to, or to that provision of, the contract, arrangement or understanding or the proposed contract, arrangement or understanding by the parties or proposed parties.


(6) 
 For the purposes of this Act but without limiting the generality of subsection (5), a provision of a contract, arrangement or understanding, or of a proposed contract, arrangement or understanding, shall not be taken not to have the purpose, or not to have or to be likely to have the effect, of fixing, controlling or maintaining, or providing for the fixing, controlling or maintaining of, the price for, or a discount, allowance, rebate or credit in relation to, goods or services by reason only that the provision recommends, or provides for the recommending of, such a price, discount, allowance, rebate or credit if in fact the provision has that purpose or has or is likely to have that effect.


(7) 
 For the purposes of the preceding provisions of this section but without limiting the generality of those provisions, a provision of a contract, arrangement or understanding, or of a proposed contract, arrangement or understanding, shall be deemed to have the purpose, or to have or to be likely to have the effect, of fixing, controlling or maintaining, or providing for the fixing, controlling or maintaining of, the price for, or a discount, allowance, rebate or credit in relation to, goods or services supplied as mentioned in subsection (1) if the provision has the purpose, or has or is likely to have the effect, of fixing, controlling or maintaining, or providing for the fixing, controlling or maintaining of, such a price, discount, allowance, rebate or credit in relation to a re‑supply of the goods or services by persons to whom the goods or services are or would be supplied by the parties to the contract, arrangement or understanding or the proposed parties to the proposed contract, arrangement or understanding, or by any of them, or by any bodies corporate that are related to any of them.


(8)
  The reference in subsection (1) to the supply or acquisition of goods or services by persons in competition with each other includes a reference to the supply or acquisition of goods or services by persons who, but for a provision of any contract, arrangement or understanding or of any proposed contract, arrangement or understanding, would be, or would be likely to be, in competition with each other in relation to the supply or acquisition of the goods or services.

 

Commentary

Prior to the repeal of s 45A, price fixing was prohibited by s 45 of the TPA with the aid of s 45A

Section 45A, combined with s 45, had the effect of prohibiting price fixing per se - that is, without the need to prove a substantial lessening of competition. Section 45A(1) deemed a provision in a contract, arrangement or understanding to be anti-competitive for the purpose of s 45, where the provision had the purpose, or had or was likely to have the effect, of fixing, controlling or maintaining the price for goods or services supplied or acquired by the parties or any of them; and two or more of the parties were competitors.

It was a defence to the price fixing prohibition to demonstrate that the provision was entered into for the purpose of a joint venture and it does not have the purpose, effect or likely effect of substantially lessening competition (s 76D). Section 76D was repealed together with s 45A.

Section 76D 
Defence to proceedings relating to price fixing provisions
 (repealed 24 July 2009)

Defence

(1)  In proceedings against a person in relation to a contravention of subparagraph 45(2)(a)(ii) or (b)(ii) in relation to a provision of the kind referred to in subsection 45A(1), it is a defence, despite subsection 45A(1), if the person establishes that the provision:

(a)  is for the purposes of a joint venture; and

(b)  does not have the purpose, and does not have and is not likely to have the effect, of substantially lessening competition.

Application of subsections 45(3) and (4)

(2)  Subsections 45(3) and (4) apply for the purposes of this section in the same way as they apply for the purposes of section 45.

Definitions

(3)  In this section:

contravention of subparagraph 45(2)(a)(ii) or (b)(ii) includes conduct referred to in paragraph 76(1)(b), (c), (d), (e) or (f) that relates to a contravention of subparagraph 45(2)(a)(ii) or (b)(ii).
proceedings means proceedings instituted under:

(a)  this Part or section 163A; or

(b)  section 21 or 23 of the Federal Court of Australia Act 1976; or

(c)  section 39B of the Judiciary Act 1903.

Last updated: 22 August 2020