On 13 February 2019 the Federal Court has ordered Cryosite
Limited (Cryosite) to pay penalties of $1.05
million for agreeing to refer customers, and actually referring
customers, to a competitor before a sale of business assets was
completed.
This is the first time the ACCC has brought a case of gun
jumping before the court and was successful. "Gun
jumping" occurs when merger or acquisition parties who are
competitors, combine or coordinate their conduct before the actual
completion of the transaction and prior to obtaining merger control
clearance. This behaviour may amount to cartel conduct or, since
the introduction of changes in November 2017, a concerted practice,
which is prohibited under the Competition and Consumer Act
2010 (CCA) and exposes both involved parties
to significant penalties under the Australian competition law.
