Jumping the proverbial gun: The ACCC succeeds in its first gun jumping cartel case against Cryosite

Julie Clarke

Australian Journal of Competition and Consumer Law

Julie Clarke, ‘Jumping the proverbial gun: The ACCC succeeds in its first gun jumping cartel case against Cryosite’ (2019) 27(4) Australian Journal of Competition and Consumer Law 276

‘The Australian Competition and Consumer Commission (ACCC) recently succeeded in its first “gun jumping” case, with the Federal Court declaring that Cryosite Limited (Cryosite) had engaged in cartel conduct when it entered into and gave effect to an asset sale agreement prior to the proposed closure date. The case highlights the importance of merging parties avoiding co-ordination of their business activities in the lead up to mergers or acquisitions.

The Cryosite decision came amid an increase in gun jumping enforcement activity internationally, coupled with an increase in the fines imposed for gun jumping infringements.

This report briefly outlines the nature and scope of gun jumping risks for merging parties in Australia and internationally and the rationale of these laws. It then examines litigation involving Cryosite, subsequent guidance issued by the ACCC and the implications for business.‘