Arrangements With Competitors: Understanding The Law And Managing The Risks

Making commercial and other arrangements with competitors is a normal part of business for many enterprises. Participation in industry groups, joint marketing, buying groups, joint ventures or the mere supply or acquisition of products and services are all common features of commerce.

From a regulatory perspective, however, there is a line to be drawn between legitimate commercial enterprise and anticompetitive collusion. While conceptually most of us know what a cartel is, where the line is drawn in respect of a particular transaction or arrangement can often be a difficult question. When exactly does legitimate cooperation become illegal collusion?

As most now know, Australia has recently introduced some of the strictest anti-cartel legislation in the world, backed up with some of the most severe penalties – including gaol – for offenders. What is perhaps not fully appreciated by business people and many of their advisers is that the laws regarding what is lawful