The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court against Woolworths Limited and Liquorland (Australia) Pty Ltd, a subsidiary of Coles Myer Ltd, two major operators of bottleshops in Australia.
The ACCC alleges that the companies' conduct contravened the exclusionary (primary boycott) provisions of the Trade Practices Act 1974 and was engaged in for the purpose of substantially lessening competition in packaged takeaway liquor markets contrary to the Act.
The ACCC alleges that Woolworths and Liquorland engaged in anti-competitive conduct by entering into alleged restrictive agreements with a number of operators of licensed premises in New South Wales for the purpose of restricting or preventing the supply of packaged takeaway liquor by those operators to retail consumers.
The ACCC alleges that the conduct arises in circumstances where Woolworths and Liquorland objected to certain liquor licence applications and then proposed restrictive agreements in return for withdrawing their objections. The restrictive agreements contained one or more conditions to the following effect:
- preventing liquor licence applicants from selling packaged takeaway liquor from their premises
- preventing liquor licence applicants opening a dedicated bottleshop
- restricting and preventing liquor licence applicants from establishing a separate drive-through bottleshop
- restricting and preventing liquor licence applicants from advertising or conducting promotions for the sale of packaged takeaway liquor over the counter to consumers
- preventing liquor licence applicants from being able to offer home delivery services for packaged takeaway liquor to consumers, for parties, functions or home consumption
- preventing liquor licence applicants from expanding the size of their licensed premises to meet potential increased consumer demand
- limiting the amount of packaged takeaway liquor which liquor licence applicants can keep on their premises in order to meet consumer demand.
The ACCC has instituted legal proceedings against Liquorland for 30 contraventions and Woolworths for 16 contraventions of sections 45(2)(a) and (b) of the Act. The ACCC is seeking declarations, injunctions, pecuniary penalties, findings of fact, orders relating to trade practices compliance programs and costs. A directions hearing has been listed for 16 July 2003 before Justice Beaumont in the Federal Court, Sydney.