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Today the Federal Court fined Peters Ice Cream $12 million for substantially lessening competition in the market for the supply by manufacturers of single service ice cream and frozen confectionary products.

The Australian Competition and Consumer Commission (ACCC) had issued proceedings against the Australasian Food Group, trading as Peters Ice Cream. The ACCC alleged that Peters acquired distribution services from PFD Food Services on condition that PFD would not sell or distribute competitors' single serve ice cream products in various geographic areas throughout Australia without the prior written consent of Peters - and that this condition substantially lessened competition in the market for the supply by manufacturers of single service ice cream and frozen confectionary products.

Peters admitted the allegations just prior to trial and the Federal Court imposed a penalty of $12 million. Frontier Economics advised the ACCC and a witness statement by Philip Williams was lodged with the Court.

Frontier Economics advises clients on a range of competition and dispute support matters and our economists regularly act as expert witnesses.

The Copyright Tribunal of Singapore today released its decision in SingNet v COMPASS.

SingNet is an ISP subsidiary of SingTel. The Composers and Authors Society of Singapore (COMPASS) had been negotiating with SingNet over the cost of the licence SingNet needed to broadcast music. SingNet brought proceedings claiming that the licence fee requested by COMPASS was unreasonable. Frontier Economics was retained by lawyers for COMPASS to provide advice and to give evidence at the hearing. The Tribunal dismissed SingNet’s claim.

Frontier Economics advises clients on a range of intellectual property valuation and dispute support matters.

 

The Australian Competition and Consumer Commission (ACCC) announced today that it will not oppose Cleanaway’s proposed acquisition of two landfills and five transfer stations in Sydney from Suez. The ACCC was concerned about the effects on competition for the transport and processing of putrescible waste (that is, waste that contains putrescible organics, such as food waste). Frontier Economics was retained by lawyers for Cleanaway to undertake an empirical analysis of the geographic markets in which transfer stations competed.

Frontier Economics advises clients on a range of competition and dispute support matters.

The National Australia Bank Limited (NAB) sought to acquire the Australian consumer business of Citigroup Australia Pty Limited (Citi). They applied for informal clearance of the proposed acquisition from the ACCC. The ACCC’s investigation focused in particular on the white-label business of Citi and whether NAB would have an incentive post-acquisition to damage this business which competed with its own-label cards.

Frontier Economics was retained by lawyers of the parties to assess these incentives and write a report which was submitted to the ACCC. The ACCC announced today that it would not oppose the acquisition.

Frontier Economics advises clients on a range of competition and dispute support matters.

The New Zealand Competition Commission (NZCC) today published a study undertaken by Frontier Economics. Our study is entitled Economic analysis of the New Zealand Retail Grocery Sector. The study was commissioned by the NZCC as an input into its market study of the New Zealand Retail Grocery Sector.

The econometric analysis consisted of two parts. The first was a cross-sectional study examining the extent to which differences in concentration in local grocery markets is associated with differences in prices charged by the supermarkets. The second was a time-series study examining the extent to which entry, exit and rebranding in local grocery markets is associated with changes in prices charged by the incumbent supermarkets.

The NZCC is seeking submissions on its draft report Market study into the retail grocery sector

Frontier Economics undertakes econometric analysis across a range of markets for our clients.

The Federal Court has declared by consent that Tasmanian Ports Corporation Pty Ltd (TasPorts) had breached section 46 of the Competition and Consumer Act by imposing a new port access charge on one of its customers, Grange Resources Ltd, after Grange notified TasPorts that it was going to switch to Engage Marine Tasmania Pty Ltd, a new provider of towage and pilotage services.

TasPorts is a corporation wholly owned by the State of Tasmania. It owns and operates the majority of ports in Tasmania and performs a range of port and marine operations at ports around Tasmania. Before Engage Marine entered the market, TasPorts was the sole supplier of pilotage and towage services at all major ports in Tasmania. TasPorts does not own Port Latta; it is owned by Grange, which operates the Savage River iron ore mine and exports iron ore from Port Latta in northern Tasmania. Grange was dissatisfied with the quality of service and the prices charged by TasPorts for towage and pilotage services; and it decided to purchase these services from Engage. TasPorts responded by imposing new port access charges on Grange.

The Australian Competition and Consumer Commission (ACCC) retained Frontier Economics to advise on the economic issues of the case. The ACCC lodged the expert testimony of Philip Williams of Frontier Economics (and a Statement in Reply to the testimony lodged by TasPorts) with the Court.

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