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COMPETITION AND CONSUMER ACT 2010 - SECT 10.08

Conference agreements may include only certain restrictive trade practice provisions

             (1)  If a conference agreement includes a provision:

                    (aa)  that is a provision where the following conditions are satisfied in relation to the provision:

                              (i)  the purpose/effect condition set out in subsection 44ZZRD(2);

                             (ii)  the competition condition set out in subsection 44ZZRD(4); or

                   (ab)  that is a provision where the following conditions are satisfied in relation to the provision:

                              (i)  the purpose condition set out in subsection 44ZZRD(3);

                             (ii)  the competition condition set out in subsection 44ZZRD(4); or

                     (a)  that is an exclusionary provision; or

                     (b)  that has the purpose, or has or is likely to have the effect, of substantially lessening competition (within the meaning of section 45);

the provision, so far as it is covered by paragraph (aa), (ab), (a) or (b), must either:

                     (c)  deal only with the following matters:

                              (i)  the fixing or other regulation of freight rates;

                             (ii)  the pooling or apportionment of earnings, losses or traffic;

                            (iii)  the restriction or other regulation of the quantity or kind of cargo to be carried by parties to the agreement;

                            (iv)  the restriction or other regulation of the entry of new parties to the agreement; or

                     (d)  be necessary for the effective operation of the agreement and of overall benefit to:

                              (i)  in the case of an outwards conference agreement--Australian exporters; or

                             (ii)  in the case of an inwards conference agreement--Australian importers.

             (2)  If a conference agreement includes a provision that permits or requires the practice of exclusive dealing (within the meaning of section 47), the provision, so far as it permits or requires that practice, must be necessary for the effective operation of the agreement and of overall benefit to:

                     (a)  in the case of an outwards conference agreement--Australian exporters; or

                     (b)  in the case of an inwards conference agreement--Australian importers.

Note:          See also paragraph 10.33(1)(ba) and section 10.72A.

             (3)  This section does not apply in relation to a provision of a conference agreement so far as the provision requires or permits a party to the agreement to enter into a loyalty agreement.



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