Australian Competition and Consumer Commission v Metcash Trading Limited [2011] FCAFC 151

FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Metcash Trading Limited [2011] FCAFC 151 Citation: Australian Competition and Consumer Commission v Metcash Trading Limited [2011] FCAFC 151

Appeal from: Australian Competition and Consumer Commission v Metcash Trading Limited [2011] FCA 967

Parties: AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v METCASH TRADING LIMITED ACN 000 031 569 and PICK N PAY RETAILERS (PTY) LTD

File number(s): NSD 1533 of 2011

Judges: FINN, Buchanan, Yates JJ

Date of judgment: 30 November 2011

Catchwords: COMPETITION – merger – competition test – whether acquisition of shares in the capital of a body corporate would be likely to have the effect of substantially lessening competition in a market – real chance test discussed COMPETITION – counterfactual case – standard of proof – discussion of whether counterfactual case required to be established on balance of probabilities or on a real chance test – whether the primary judge erred in his evaluation of the counterfactual case as speculative COMPETITION – market definition – hypothetical monopolist test – functional level – whether market properly defined as a wholesale market – whether market should be defined by reference to multiple functional levels

Legislation: Competition and Consumer Act 2010 (Cth) ss 50(1), 50(3) Evidence Act 1995 (Cth) s 140

Cases cited: Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd (2006) ATPR ¶42-123 Australian Gas Light Company v Australian Competition and Consumer Commission (2003) 137 FCR 317 Australian Telecommunications Commission v Krieg Enterprises Pty Ltd (1976) 27 FLR 400 Boral Besser Masonry Limited v Australian Competition and Consumer Commission (2003) 215 CLR 374 Bradshaw v McEwans Pty Ltd (1951) 217 ALR 1 Dandy Power Equipment Pty Ltd v Mercury Marine Pty Ltd (1982) 64 FLR 238 Global Sportsman Pty Ltd v Mirror Newspapers Pty Ltd (1984) 2 FCR 82 Howe v R (1980) 55 ALJR 5 Jones v Dunkel (1959) 101 CLR 298 Lithgow City Council v Jackson (2011) 85 ALJR 1130; 281 ALR 223 Luxton v Vines (1952) 85 CLR 352 Momcilovic v R (2011) 85 ALJR 957; 280 ALR 221 Monroe Topple & Associates Pty Ltd v Institute of Chartered Accountants in Australia (2002) 122 FCR 110 News Limited v Australian Rugby Football League Limited (1996) 64 FCR 410 Outboard Marine Australia Pty Ltd v Hecar Investments (No 6) Pty Ltd (1982) 66 FLR 120 Re Fortescue Metals Group Ltd (2010) 242 FLR 136 Re QIW Ltd (1995) 132 ALR 225 Re Queensland Co-operative Milling Association Ltd; Re Defiance Holdings Ltd (1976) 25 FLR 169 Seven Network Limited v News Limited [2007] FCA 1062 Seven Network Ltd v News Ltd (2009) 182 FCR 160 Sheen v Fields Pty Ltd (1984) 58 ALJR 93 Singapore Airlines Limited v Taprobane Tours WA Pty Ltd (1991) 33 FCR 158 Sydneywide Distributors Pty Ltd v Red Bull Australia Pty Ltd (2002) 55 IPR 354 Tillmanns Butcheries Pty Ltd v Australasian Meat Industry Employees' Union (1978) 34 FLR 494 Tillmanns Butcheries Pty Ltd v Australasian Meat Industry Employees' Union (1979) 42 FLR 331 Trade Practices Commission v Ansett Transport Industries (Operations) Pty Ltd (1978) 32 FLR 305 Trade Practices Commission v TNT Management Pty Ltd (1985) 6 FCR 1 United States v EI du Pont de Nemours & Company (1956) 351 US 377 Universal Music Australia Pty Ltd v ACCC (2003) 131 FCR 529 Heydon JD, Trade Practices Law (Lawbook Co., subscription service) at [3.245] (update 115) Smith R and Walker J, "Part IIIA Efficiency and Functional Markets" (1998) 5 Aust Jnl of Corp Law 1