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ARTICLE · 20 MAY 2019

ACCC Wins First 'Gun Jumping' Case Against Competing Life Science Companies

The Federal Court has issued a rebuke of competitors involved in a merger which cooperate or coordinate their conduct before the merger is complete.

AustraliaAntitrust/Competition Law

The Federal Court has issued a rebuke of competitors involved in a merger which cooperate or coordinate their conduct before the merger is complete. Organisations must be wary of their conduct and potential cooperation while a transaction is progressing. Cooperation between competitors prior to the effective date of the transaction, even if an agreement has been signed, is referred to as "gun jumping" and may constitute cartel conduct or concerted practices, which can be subject to significant penalties.

Background

After the collapse of StemTech in 2016, Cryosite and Cell Care Australia ("Cell Care") were the only two private suppliers of cord blood and tissue services ("CBT banking services") in Australia.

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