Understanding when conduct crosses the line into a contract arrangement or understanding is critical for businesses navigating competition law. A recent High Court of Australia decision provides important clarification on what constitutes an understanding, particularly in situations involving threats or ultimatums. Although decided under Australian law, the reasoning is likely to influence how similar issues are assessed in New Zealand. This article explains the key facts of the case, the courts’ differing approaches, and the practical lessons for New Zealand businesses seeking to manage competition law risk.
