NSW: Penalties for music companies to be decided next year

AAP General News (Australia)
12-19-2001
NSW: Penalties for music companies to be decided next year

SYDNEY, Dec 19 AAP - A court will decide next year what penalties two of the world's
leading music companies should face for misusing their market power in Australia.

The Federal Court last week found Warner Music and Universal Music engaged in exclusive
dealing to prevent parallel imports of CDs.

Justice Donald Hill found their activity breached sections of the Trade Practices Act 1974.

A hearing today on what penalties the companies should face was set down for February 1.

The Australian Competition and Consumer Commission (ACCC) began proceedings against
the companies in September 1999.

They alleged the companies had engaged in unlawful action in order to discourage or
prevent Australian businesses from selling competitively priced parallel imports of CDs.

Investigations began in 1998 into the conduct of both companies, following allegations
they had threatened to withdraw significant trading benefits from retailers who stocked
parallel imports.

In several cases it was alleged Warner and Universal had cut off supply to such retailers.

AAP gl/nf/sb

KEYWORD: WARNER

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