Section 45AO — Competition and Consumer Act 2010: Joint ventures—prosecution

Sections 45AF and 45AG do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that: (a) the cartel provision is: (i) for the purposes of a joint venture; and (ii) reasonably necessary for undertaking the joint venture; and (b) the joint venture is for any one or more of the following: (i) production of goods; (ii) supply of goods or services; (iii) acquisition of goods or services; and (c) the joint venture is not carried on for the purpose of substantially lessening competition; and (d) 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 (e) 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: (i) their joint control; or (ii) their ownership of shares in the capital; of that body corporate. Note 1: A defendant bears a legal burden in relation to the matter in this section (see section 13.4 of the Criminal Code). Note 2: 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.