Should the cartel provisions of the CCA apply to vertical supply transactions between firms, that as well as having a supplier – customer relationship, are also competitors?

Should the cartel provisions of the CCA apply to vertical supply transactions between firms, that as well as having a supplier – customer relationship, are also competitors?

Assignment Question
Should the cartel provisions of the CCA apply to vertical supply transactions between firms, that as well as having a supplier – customer relationship, are also competitors?

Your discussion should include consideration of the following:
• The competitive effects of vertical supply agreements;
• The rationale for the per se prohibition of cartel conduct
Your discussion need not, however, be limited to the above considerations.

Background/context
The Harper Report made several recommendations in relation to cartels and vertical conduct. among them was the following:
Recommendation 27 – Cartel Conduct prohibition
The Prohibitions against cartel conduct in Part IV, Division 1 Of the CCA Should be simplified and the following specific changes made:

• An Exemption should be included for trading restrictions that are imposed by one firm on another in connection with the supply or acquisition of goods or services (including Intellectual property licensing), recognising that such conduct will be prohibited by section 45 Of the CCA (or Section 47 If retained) if it has the purpose, effect or likely effect of substantially lessening competition.

you may find it useful to consider the Harper Review’s discussion of this issue and associated commentary and submissions.

Assignment instructions
• Resources
Much has been written on the issue of vertical supply agreements and their competitive effects. More specifically, consideration of the Harper Review’s discussion of this issue will help you identify the key issues.
Do not rely on online opinion pieces. Journal articles and booked are peer reviewed therefore more reliable.
• Word limit
The word limit for this assignment is 3000 words.

• Style and referencing
The submission should be written in essay style, with sub-headings encouraged to provide structure.
Footnotes and a bibliography must be included.
Citation footnotes are not included in the word limit.
The bibliography is not included in the word limit
You are expected to adhere to the Australian Guide to Legal Citation (AGLC).

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