Signalling, collusion and s 45 of the Trade Practices Act

Rhonda Smith, Arlen Duke and David Round
(2009) 17 Competition & Consumer Law Journal 22-42

Abstract

'If the policy requirement is that the Trade Practices Act should prohibit tacit collusion, there will be considerable difficulty establishing that there is an arrangement between competitors to the current legal standard — communication and mutual obligation or reciprocity. This article considers how signalling may facilitate coordination of competitors and why this is unlikely to fit the legal requirement for an arrangement. Consideration is then given to whether any guidance as to when an arrangement exists can be obtained from contract law. Finally, some suggestions are offered as to the factors that would need to be considered if the existence of an arrangement was to be inferred.'

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