The ACCC announces appeal in egg cartel case: the plot chickens!

Key Points:

The ACCC's loss in the egg case is a practical example of the gap identified in the Harper Review between the current law in Australia in comparison to comparable overseas jurisdictions.

The Australian Competition and Consumer Commission (ACCC) will appeal the Federal Court's decision to dismiss its application for penalties against the Australian Egg Corporation Limited (AECL) and others in the egg industry for an alleged attempt to create a cartel to control the supply of eggs.

The case concerned a perceived oversupply of eggs, coupled with a meeting of egg producers and the industry body, the AECL. While the ACCC demonstrated in Court that participants at a so-called "crisis meeting" in January 2012 intended to take action to address the issue of an oversupply of eggs in the Australian market, the Court found the ACCC had not proved the conduct was an attempt to make an agreement or understanding that involved reciprocal obligations.