TRADE PRACTICES COMMISSION V. NICHOLAS ENTERPRISES PTY LTD (NO 2) (1979) 40 FLR 83
Federal Court of Australia
The defendants ran five hotels in the metropolitan area of Adelaide. The defendants all sold packaged beer to the public.
The Trade Practices Commission commenced proceedings against the defendants claiming pecuniary penalties and injunctions. The claim alleged breaches of section 45 of the Trade Practices Act as the defendants had made an arrangement or arrived at an understanding which had the purpose or effect of substantially lessening competition and that they gave effect to that understanding. The essence of the arrangement as alleged was that the defendants would only allow two bonus bottles to customers who purchase twelve bottles instead of the then customary three bonus bottles.
Had the defendants made an arrangement or reached an understanding that they would reduce their bonus supply of beer?
Did the alleged arrangement lead to , or substantially reduce competition?