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A capitalist market economy relies upon several principles: private property, control of production, accumulation of capital, and competition. The latter, competition, is a vital element of the Australian economy as it demands that businesses compete against each other to keep prices lower, quality high, and innovation continuous. Competition is so important to ethical business practice that anti-competitive conduct has been made illegal. Anti-competitive behaviour by businesses can be applied in different ways, but one of the most popular forms of collusion is market sharing.

What is Market Sharing?

Market sharing is a form of white-collar criminal conduct where competitors collude to divide, allocate or “share” customers, suppliers or territories in order to avoid competing against each other. 

What is Anti-Competitive Behaviour?

Anti-competitive behaviour is illegal corporate conduct which seeks to collude with potential rivals in order to avoid fair competition and bolster its profits. Anti-competitive behaviour can involve market sharing, price fixing, bid rigging, and output restriction, all of which are referred to as cartel conduct. 

The Australian economy  operates under a market capitalist system which means that producers and suppliers utilise the freedom to make and exchange goods and services with consumers for money. According to economic theory, healthy competition between businesses creates lower prices, greater variety, better quality goods and services, and drives innovation. In order to be successful, a business must figure out a way to stand out from its competition and to offer a point of difference so that customers choose them. 

When businesses attempt to flout this healthy competition through collusion, this is an attempt to create a monopoly of the market and is considered to be illegal anti-competitive conduct.

What is a Cartel?

A cartel refers to businesses covertly working together to illegally control the market, restrict goods and services, and ultimately bolster profits. By doing this, cartels undermine market competition which contributes to a monopolisation of goods and services, artificially elevated prices for consumers, lower quality products and services, and a disadvantage for businesses attempting to compete legally.

By colluding, companies can reduce choice, quality and services for customers, and undermine other businesses. It can also artificially raise prices for products and services which can be felt by consumers, small businesses, and the taxpayers. 

Market Sharing vs Market Share

Market sharing is very different from the term “market share”. Market sharing is illegal cartel conduct which refers to businesses colluding to divide up customers to avoid competing, whereas market share refers to the measurement of the objective size, dominance and competitiveness of a company as it relates to the market that it is in. For instance, if an Australian electronics company sold $20 million dollars worth of televisions in the last year, and the total of Australian televisions sold domestically was $200 million, then that company’s Australia market share for televisions would be 10%.

Market Sharing Laws and Penalties

Market sharing falls under the crime of cartel conduct, which is a direct breach of section 45 of the Competition and Consumer Act, which prohibits contracts, arrangements or concerted efforts to substantially lessen competition in a market. These laws are enforced by the Australian Competition and Consumer Commission, who often work in partnership with federal police when investigating potential cartel conduct. 

What is the Difference Between Market Sharing and Exclusive Distribution?

Exclusive distribution is when a supplier agrees to sell its product exclusively through a specific retailer in a certain territory. Unlike market sharing, exclusive distribution is legal.

It is common for non-competition laws to be confused with exclusivity clauses and vice versa, as they both appear to create a monopoly by prohibiting particular distributors from purchasing and reselling particular products.

What is Exclusive Distribution?

Exclusive distribution is an agreement between a supplier and a retailer which grants the exclusive rights within a specific geographical area. It is common for industries which offer luxury items or high-price products such as  high-tech electronics, automakers, and appliance manufacturers to utilise exclusive distribution because the products require a specialised level of skill, maintenance, or repair. Examples of companies that use this method are Samsung, Gucci, Lamborgini, Apple, and Mercedes. 

In 2008, a class-action lawsuit was filed against Apple and AT&T after iPhone customers discovered that they could not change service carriers. In the court case, the two companies argued that it was not an illegal monopoly as they had a documented agreement on AT&T having exclusive distribution rights for the iPhone. The case was eventually settled out of court for an unknown figure.

The Impact of Market Sharing

Cartel conduct is illegal because it cheats consumers, small business owners and taxpayers of fair competition, competitive prices, high quality products and services, and restricts innovation amongst competitors. Market sharing in particular can restrict economic growth by artificially inflating capital costs in the supply chain, reducing investments by preventing burgeoning companies entering the market, destroying other businesses that cannot compete, and increasing taxes by targeting the public sector. 

An Example of Market Sharing

Despite market sharing being illegal, there have still been instances of market sharing in Australia in recent years. One of the most prominent of these cases was the Queensland pre-mixed concrete cartel which operated in south-east Queensland between 1989 and 1994. The cartel was made up of three companies who agreed to divide their customers, who they referred to as “pets” in meetings and phone conversation, and also bid rig and price fix, leading to overcharging of local, state and federal government projects. Each company was fined $6.6 million, and six executives involved incurred hefty fines.

LY Lawyers and Cartel Offences

At LY Lawyers, we have a proven track record in defending cartel conduct charges, including a successful result within the first sentencing proceedings for cartel offences in Australia. 

We pride ourselves on our dedication to fighting hard to protect your rights. Whether you feel as though you have been misidentified for anti-competitive behaviour, or have been a victim of an unjust court decision regarding cartel conduct, we have the legal experience and expertise to help you find a solution that helps put things right. Call us today on 1300 595 299 or go online and book a free consultation today.

Meet our Founder

Adam Ly, B. Ec. (Majoring in Economics), LL.B.

Managing Director and Principal Lawyer

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Contact LY Lawyers Today!

Contact LY Lawyers today for a confidential consultation with an experienced criminal defence lawyer. We are available 24/7 to answer your questions and guide you through the legal process.

We understand you may be feeling lost and overwhelmed by the sheer weight of the charges against you; rest assured that as a leading criminal law firm in Sydney, we are well-versed in the complexities of criminal law and are committed to providing you with the aggressive and effective representation you deserve.

Achieving results one case at a time

The team at LY Lawyers were great to deal with, after getting charged with a minor offence. The costs were upfront and affordable. Communication was great and I felt like they really cared about me. If I was ever in trouble again they would be my first point of call for help.

Sarah Davies

Ly Lawyers
5.0
2017-02-01T00:09:03+00:00

Sarah Davies

The team at LY Lawyers were great to deal with, after getting charged with a minor offence. The costs were upfront and affordable. Communication was great and I felt like they really cared about me. If I was ever in trouble again they would be my first point of call for help.

Achieving results one case at a time

What a result from a great team!

Adam handled my case and put everything he had into it. He's a great lawyer at affordable fees. Would highly recommend.

John L.

Ly Lawyers
5.0
2017-02-01T01:38:38+00:00

John L.

What a result from a great team! Adam handled my case and put everything he had into it. He's a great lawyer at affordable fees. Would highly recommend.

Achieving results one case at a time

Highly recommend! Joseph handled my case and got the result he said i would, communication was great and his advice on what to do to help my case was great, dont hesitate to give them a call if you ever need legal help.

Todd Hurring

Ly Lawyers
5.0
2017-06-25T22:46:32+00:00

Todd Hurring

Highly recommend! Joseph handled my case and got the result he said i would, communication was great and his advice on what to do to help my case was great, dont hesitate to give them a call if you ever need legal help.

Achieving results one case at a time

Want to say a big thanks to Adam and the team, was looking at jail without a doubt, already had 2 other common assaults, a GBH, and a fair few other charges on my record and facing another GBH. Never done jail before and thought this was my time for sure. Great service from them, Adam always answered my calls and step me through everything the whole way. Managed to stay out of jail with a ICO order, big win, thanks again, highly recommend

Breno T.

Ly Lawyers
5.0
2017-06-25T22:53:27+00:00

Breno T.

Want to say a big thanks to Adam and the team, was looking at jail without a doubt, already had 2 other common assaults, a GBH, and a fair few other charges on my record and facing another GBH. Never done jail before and thought this was my time for sure. Great service from them, Adam always answered my calls and step me through everything the whole way. Managed to stay out of jail with a ICO order, big win, thanks again, highly recommend

Achieving results one case at a time

I just wanted to say a big thank you to LY Lawyers. My husband just got his sentence at Parramatta District Court last week, expecting to be in jail a lot longer. He was charged with supplying commercial drugs. LY Lawyers represented him with great passion and commitment, all of their staff chipping in to get a short sentence. Only a year to go before he gets out!

Kim Smith

Ly Lawyers
5.0
2017-06-25T22:53:58+00:00

Kim Smith

I just wanted to say a big thank you to LY Lawyers. My husband just got his sentence at Parramatta District Court last week, expecting to be in jail a lot longer. He was charged with supplying commercial drugs. LY Lawyers represented him with great passion and commitment, all of their staff chipping in to get a short sentence. Only a year to go before he gets out!

Achieving results one case at a time

It was a pleasure to work with LY Lawyers. They got me off from my charge. Could not thank them enough!

William Song

Ly Lawyers
5.0
2017-06-25T22:54:34+00:00

William Song

It was a pleasure to work with LY Lawyers. They got me off from my charge. Could not thank them enough!

Achieving results one case at a time

Joseph was amazing and did a fine job representing me in my case. He got the job done and got me the result I wanted.

Habib Rahman

Ly Lawyers
5.0
2017-06-25T22:55:09+00:00

Habib Rahman

Joseph was amazing and did a fine job representing me in my case. He got the job done and got me the result I wanted.

Achieving results one case at a time

Joseph you did an amazing job representing me at Sydney District court . My prior lawyer didn't do anything for me in the local court, but u guys were great in the district court. Thanks for being patient with me too.

Josh Tyler

Ly Lawyers
5.0
2017-06-25T22:56:43+00:00

Josh Tyler

Joseph you did an amazing job representing me at Sydney District court . My prior lawyer didn't do anything for me in the local court, but u guys were great in the district court. Thanks for being patient with me too.

Achieving results one case at a time

I just wanted to say thank you for helping me with my case and THANK YOU for the section 10!

Craig H

Ly Lawyers
5.0
2017-06-25T22:57:53+00:00

Craig H

I just wanted to say thank you for helping me with my case and THANK YOU for the section 10!
5.0
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Frequently Asked Questions

Being charged with a criminal offence can be a stressful and confusing experience. At LY Lawyers, we understand the challenges you face.

Here’s a look at some of the most frequently asked questions about criminal law in Sydney, Australia:

A: A criminal defence lawyer is a legal professional who specialises in representing individuals accused of crimes. Their role is to protect your rights throughout the legal process, from the initial investigation, to the court proceedings. Here are some key responsibilities of a criminal defence lawyer:

  • Investigating the case: They gather evidence, interview witnesses, and analyse the prosecution's case to build a strong defence.
  • Providing legal advice: They will explain your legal rights and options and explore your potential defences, guiding you through the complexities of the criminal justice system.
  • Negotiating with prosecutors: They may negotiate plea bargains to potentially reduce charges or penalties.
  • Representing you in court: They will advocate for you in court hearings and trials, presenting your defence arguments.

A: A traffic lawyer is a specialised type of criminal defence lawyer who focuses on traffic offences. These can range from minor speeding tickets to more serious charges like drink driving or driving without a licence. A traffic lawyer can:

  • Challenge the validity of traffic stops or charges.
  • Negotiate for reduced penalties or licence suspensions.
  • Represent you in court for traffic-related offences.

A: Finding the right lawyer for you depends on your specific circumstances. Here are some tips to find the best legal representation:

  • Consider your case: Identify the type of offence and choose a lawyer with significant experience handling similar cases.
  • Research potential lawyers: Read online reviews and testimonials, and check their qualifications and experience.

Contact your preferred lawyers: Schedule consultations to discuss your case and assess their communication style and fees.

A: Legal fees can vary depending on the complexity of your case, the lawyer's experience, and the length of representation required. Most criminal lawyers offer upfront quotes or hourly rates. Here are some factors impacting the cost:

  • Severity of the charge: More serious charges typically require more lawyer time and resources, thus leading to higher fees.
  • Complexity of the case: Cases with intricate details or witness testimony might require more investigation and legal strategy, thus increasing the cost.
  • Trial vs. Plea Bargain: If your case goes to trial, expect higher fees compared to resolving it through a plea bargain.

A: Many criminal defence lawyers offer free consultations, allowing you to discuss your case and get an initial assessment. This can help you understand your legal options and decide if the lawyer is indeed a good fit for you.

A: Here's what to do if you've been accused of a crime:

  • Remain silent: Don't answer any questions from law enforcement officers without your lawyer present.
  • Contact a criminal defence lawyer immediately: They can advise you on your rights and guide you through the next steps.
  • Don't tamper with evidence: Don't attempt to destroy or hide anything related to the case.

Be honest with your lawyer: Provide them with all the details of your situation for the best possible defence.

A: If you can't afford a private lawyer, you may be eligible for legal aid. This government programme provides financial assistance for legal representation in criminal cases.

  • The burden of proof lies with the prosecution: They must prove your guilt beyond a reasonable doubt.
  • You have the right to remain silent: You don't have to answer any questions that could incriminate yourself.

You have the right to a lawyer: You can request legal representation at any point during the legal process.

A: This is a crucial decision best made in consultation with your lawyer. They will assess the evidence, your potential defences, and the likely outcomes to advise you on the best course of action.

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