Common use of Competition Laws Clause in Contracts

Competition Laws. 22. The purpose of Part 4 of this Agreement is to maintain consistent national Competition Laws for all types of businesses in Australia. This is achieved by the Competition Code which applies the Competition Laws to persons and businesses within the legislative competence of the states and territories as the law of those Parties. 23. Part 4 of this Agreement requires Parties to apply the Competition Laws in their state or territory to ensure they prohibit anticompetitive behaviour by entities over which they have legislative competence. It sets out the process for consulting and voting on modifications to the Competition Laws, and for Parties to except conduct from the Competition Laws’ prohibition of anticompetitive behaviour in accordance with section 51 of the Competition and Consumer Act. 24. The Parties will use legislation to apply the Competition Code text to all persons within the legislative competence of each Party. 25. If the Commonwealth Minister is satisfied that a Party has used its laws to make significant modifications to the Competition Code text in its application to their jurisdiction, the Commonwealth Minister may publish a notice by registering it as a notifiable instrument in accordance with section 150K(1) of the Competition and Consumer Act. 26. The Commonwealth Minister may only publish a notice by a notifiable instrument pursuant to clause 25 if the notice is published before the expiry of 2 months from the date on which the Commonwealth received written notice pursuant to clause 36 advice from Parties on Modifications to Competition Laws. 27. If the Commonwealth Minister has published a notice pursuant to clause 25 stating a Party has significantly modified the Competition Code text, the Commonwealth Minister may revoke that notice by publishing another notice in accordance with section 150K(2) of the Competition and Consumer Act. 28. Some Commonwealth, state and territory laws allow conduct that would otherwise contravene Part IV of the Competition and Consumer Act but for the operation of section 51(1) of the Competition and Consumer Act. Section 51(1) of the Competition and Consumer Act permits this conduct if it is specifically authorised under the law. 29. Where a Party enacts legislation that relies on section 51 of the Competition and Consumer Act, that Party will advise the Commission in writing about the legislation within 30 days of the legislation being enacted. 30. After 4 months from when a Party sends written notice to the Commission pursuant to clause 29, the Commonwealth Minister will not table in the Commonwealth Parliament regulations made for the purposes of section 51(1C)(f) of the Competition and Consumer Act in respect of the legislation referred to in the notice unless the Commonwealth Minister tables in the Parliament at the same time a report by the Council on: a. whether the benefits to the community from the legislation referred to in the notice, including the benefits from transitional arrangements, outweigh the costs; b. whether the objectives achieved by restricting competition by means of the legislation referred to in the notice can only be achieved by restricting competition; and c. whether the Commonwealth should make regulations for the purposes of section 51(1C)(f) of the Competition and Consumer Act.

Competition Laws. 22. The purpose of Part 4 of this Agreement is to maintain consistent national Competition Laws for all types of businesses in Australia. This is achieved by the Competition Code which applies the Competition Laws to persons and businesses within the legislative competence of the states and territories as the law of those Parties. 23. Part 4 of this Agreement requires Parties to apply the Competition Laws in their state or territory to ensure they prohibit anticompetitive behaviour by entities over which they have legislative competence. It sets out the process for consulting and voting on modifications to the Competition Laws, and for Parties to except conduct from the Competition Laws’ prohibition of anticompetitive behaviour in accordance with section 51 of the Competition and Consumer Act. 24. The Competition Code The Parties will use legislation to apply the Competition Code text to all persons within the legislative competence of each Party. 25. If the Commonwealth Minister is satisfied that a Party has used its laws to make significant modifications to the Competition Code text in its application to their jurisdiction, the Commonwealth Minister may publish a notice by registering it as a notifiable instrument in accordance with section 150K(1) of the Competition and Consumer Act. 26. The Commonwealth Minister may only publish a notice by a notifiable instrument pursuant to clause 25 if the notice is published before the expiry of 2 months from the date on which the Commonwealth received written notice pursuant to clause 36 advice from Parties on Modifications to Competition Laws. 27. If the Commonwealth Minister has published a notice pursuant to clause 25 stating a Party has significantly modified the Competition Code text, the Commonwealth Minister may revoke that notice by publishing another notice in accordance with section 150K(2) of the Competition and Consumer Act. 28. Exceptions from the Competition Laws Some Commonwealth, state and territory laws allow conduct that would otherwise contravene Part IV of the Competition and Consumer Act but for the operation of section 51(1) of the Competition and Consumer Act. Section 51(1) of the Competition and Consumer Act permits this conduct if it is specifically authorised under the law. 29. Where a Party enacts legislation that relies on section 51 of the Competition and Consumer Act, that Party will advise the Commission in writing about the legislation within 30 days of the legislation being enacted. 30. After 4 months from when a Party sends written notice to the Commission pursuant to clause 29, the Commonwealth Minister will not table in the Commonwealth Parliament regulations made for the purposes of section 51(1C)(f) of the Competition and Consumer Act in respect of the legislation referred to in the notice unless the Commonwealth Minister tables in the Parliament at the same time a report by the Council on: a. : whether the benefits to the community from the legislation referred to in the notice, including the benefits from transitional arrangements, outweigh the costs; b. ; whether the objectives achieved by restricting competition by means of the legislation referred to in the notice can only be achieved by restricting competition; and c. and whether the Commonwealth should make regulations for the purposes of section 51(1C)(f) of the Competition and Consumer Act. Modifications to Competition Laws If Part IV of the Competition and Consumer Act or the Schedule version of Part IV of that Act is modified, similar modifications will be made to corresponding provisions of the other. The Commonwealth will consult Parties that are fully-participating jurisdictions on proposed modifications to Part IV of the Competition and Consumer Act or the Competition Code text and call a vote on the proposed amendments to implement those proposed modifications in accordance with clauses 33 to 35. Consultation on proposed modifications: The Commonwealth will consult on proposed modifications by providing the proposed modifications in writing to Parties. The Commonwealth will provide Parties 3 months to respond to the proposed modifications in writing. A Party can request in writing that the Commonwealth convene a meeting during the consultation period to discuss the proposed modifications. The Commonwealth may waive the requirements for consultation if a waiver is agreed in writing by a majority of Parties. The consultation requirements will be reinstated if a majority of Parties notify the Commonwealth in writing that new information has become available, since the consultation period was waived, that would have a material effect on the consideration of the proposed modifications. The reinstated consultation period will be deemed to have commenced on the date the majority of Parties agreed to reinstate the consultation requirements. The Commonwealth does not need to consult on the proposed modifications if they are minor or inconsequential but must give the Parties sufficient notice of its reasoning and intention to make the proposed modifications. Where the Commonwealth has notified the Parties of minor or inconsequential proposed modifications in accordance with clause 33.f and four Parties advise the Commonwealth Minister in writing within 21 days of notification that they believe the proposed modifications are not minor or inconsequential, then the Commonwealth must submit the proposed amendments to a vote of the Parties in accordance with the procedure set out in clause 34. Voting on proposed amendments: At the end of the consultation period outlined in clauses 33.a to 33.e or following the notification outlined in clause 33.g, the Commonwealth will call a vote from Parties on the proposed amendments to implement the proposed modifications and provide any supporting documentation that is available. Voting rights: each Party will have one vote; and the Commonwealth will have a casting vote in the event of a tie. The Commonwealth will provide 35 calendar days for Parties to provide their vote in writing after it sends the written request for a vote. In exceptional circumstances, Parties may determine an alternative voting date by unanimous agreement in writing (that is consistent with clause 33). If a Party does not provide its vote in writing within 35 calendar days, that Party will be taken to have abstained from the vote. The only circumstance in which a Party may abstain from the vote is if a Party is in caretaker mode at any time between the date of the notice and the voting date. If the majority of Parties abstain from a vote, a revote may be triggered by the Commonwealth. The Commonwealth will not put forward for parliamentary consideration amendments to the Competition Code text unless the proposed amendments are supported by: the Commonwealth; and four other Parties. If a Party makes an amendment to the Competition Laws, that Party will write to all other Parties setting out the amendment to the Competition Laws that has been made by the legislature of that Party. Part 5 – National Competition Institutions Part 5 of this Agreement sets out the institutional arrangements that support effective implementation and advancement of National Competition Policy and enforcement of the Competition Laws.