Digi is a Victorian technology company based in the city of Geelong. The CEO of digi, Logan Bright, announced in July 2022 that the company would be opening a branch in Perth. He also announced that the company was currently in the process of bidding for a facility that is vacant "somewhere in Welshpool". SonixSound, together with four other leading technology companies had an understanding to outbid digi in getting the vacant facility. Trent Parker, the CEO of SonixSound proposed that they approach his friend Zach Bronson, the owner of TechGuys to make the bid and they would assure him that they would help him get the facility. This would be on the condition that SonixSound acquires 40 percent of TechGuys' shares. Zach thinks this could be a good way of expanding his business.

Meanwhile, Australia's two main supermarket chains, Speers and Grocery Mart collectively control over 70% of the market share, giving them substantial market power. Speers is the larger of the two supermarket chains. It has required several of its suppliers, particularly smaller local food producers, to sign contracts, preventing them from supplying their products to other retailers. These contracts have placed significant financial pressure on local suppliers who are heavily reliant on Speers for distribution. Many small producers claim they have been forced into these agreements. High-level executives from Speers and Grocery Mart have allegedly entered into an agreement to coordinating prices on essential food items like bread, dairy products, and meat.

 

(a) Identify and discuss the legal issues arising out this Case Study. 

(b) Critically analyse the issues which should be based on sound judgement and the application of legal principles. 

(c) Identify and explain the breach(es) of the relevant provisions of the Australian Consumer Law and/or the Competition and Consumer Act