On 3 December 2008, the Federal Government introduced the Trade
Practices Amendment (Cartel Conduct and Other Measures) Bill into
the House of Representatives. The Bill passed through the House of
Representatives and is currently before the Senate.
If it becomes law, the Bill will have far-reaching implications
for the conduct of trade and commerce in Australia. It will make it
a criminal offence to make or give effect to a contract arrangement
or understanding that contains a "cartel provision".
By declaring that a company commits a criminal offence if it
knowingly makes or gives affect to a cartel provision, the Bill
signals a "get tough" approach on serious (sometimes
known as "hard core") cartel conduct. Although the
application of criminal sanctions to this behaviour is acceptable
in principle, and is the law of most of Australia's major
trading partners, serious questions have been raised about whether
the Bill goes too far and will stifle legitimate
