Oh yeh, apparently they have
initiated the contest and the first runner is from Australia!!!
My name is Michael Leunig. I am a professional cartoonist who works in Melbourne, Australia. As a show of solidarity with the Muslim world,
and an exercise in free speech, I would like to submit a cartoon to you on the theme of the Holocaust. I have had some difficulty getting this work published in my own country, and I believe it would help highlight the hypocrisy of the West's attitude to free speech if you were to publish it.There has been a real controversy here over one of my cartoons in particular.It was refused publication by The Age newspaper,who regularly print my work. You can read about it ..."
The website of the contest mentions at the top of its homepage that "Attention: Regarding to clarification of the issue of 'Holocaust' this website possibly will be closed by United States, in this case please refer to the following address ..."
More(here and here)
IranCartoon.ir also runs another idea titled :"Official reaction of the Iranian cartoonists to the publication of the drawings humiliating on the Mohamed prophet"
here