Competition and Consumer Act 2010

Sections 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:

the cartel provision is:

for the purposes of a joint venture; and

reasonably necessary for undertaking the joint venture; and

the joint venture is for any one or more of the following:

production of goods;

supply of goods or services;

acquisition of goods or services; and

the joint venture is not carried on for the purpose of substantially lessening competition; and

in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and

in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:

their joint control; or

their ownership of shares in the capital;

For example, if a joint venture formed for the purpose of research and development provides the results of its research and development to participants in the joint venture, it may be a joint venture for the supply of services.

A defendant who wishes to rely on subsection (1) must prove that matter on the balance of probabilities.