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ARTICLE · 22 AUGUST 2014

Cartel conduct - Don’t end up with egg on your face...

Holding Redlich
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It is alleged that the AECL attempted to induce egg producers to reduce the supply of eggs, in order to inflate prices.

AustraliaAntitrust/Competition Law
Kylie Hall
Kylie Hall
Nicola Hope
Nicola Hope
Author LinkedIn connections

The Australian Egg Corporation (AECL), and Australian egg production, is the latest industry to come under scrutiny by the Australian Competition and Consumer Commission (ACCC) for alleged cartel conduct. Cartel conduct occurs when businesses agree to act together rather than competing against each other, with negative outcomes for the market. The ACCC alleges that the AECL attempted to induce egg producers to enter into arrangements to reduce the supply of eggs available to meet consumer demand in order to inflate prices.

In today's tough economic climate, and in the face of falling profit margins, it is unsurprising that Australian producers are communicating between themselves as to how to survive in an ever more difficult industry. So when does this conduct go from participants in an industry legitimately supporting each other, to anti-competitive behaviour?

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