The collusion of two or more corporations can result in anti-competitive conduct. This occurs when two usual competitors fix the price of their goods or services by forming a ‘contract, arrangement or understanding’. This is ‘horizontal’ coordinated conduct, meaning that retail competition between two corporations for the same goods or service is eliminated. The consumer subsequently suffers as a result of having to pay higher retail prices for those particular goods or services.
To achieve and regulate consumer protection, fair trade and competition within Australia, the Competition and Consumer Act 2010 (Cth) (“CCA”) implements consumer safeguards by governing the relationship between retailers, suppliers and consumers. This promotes a healthy and stable
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These provisions protect consumers and fair trade in Australia by acting as a firm of deterrence.
4. Conclusion
The CCA endeavours to protect the welfare of Australians through the regulation of competition. The provisions set forth in Part IV Div I protect by imposing high monetary penalties in order to deter corporations from engaging in anti-competitive conduct.
To achieve a well-balanced and healthy economy that encourages both fair competition and consumer protections, the corporation and the consumer must be aware of the relevant market they are trading in to ensure they do not breach any legislative provisions.
PART TWO
5. Australian Competition and Consumer Commission v Visy Holdings Pty Ltd (No 3)
The decision in Australian Competition and Consumer Commission v Visy Holdings Pty Ltd (No 3) [2007] FCA 1617 (“Visy Case”) was an important and defining case concerning cartel prohibitions in Australia, changing anti-competitive conduct sentencing precedents.
5.1 Background of the Visy
In the case of Woolworths and Coles, both businesses are being investigated by the Australian Competition and Consumer Commission (ACCC) for abusing their market power by intimidating suppliers to reduce the price of products so they can buy them for cheap. Due to Woolworths and Coles
- Helps decreases inflammation in the body, which helps to prevent diseases, build a strong immune system, and treat current disease
Apart from Antitrust laws, there are several other laws that promote fair business practices. The Robinson-Patman Act prohibits price discrimination. This act ...
This essay will examine key aspects of the recent implementation of the Australian Consumer Law (ACL) 2011, which is the largest overhaul in Consumer Law in Australia in the past twenty five years. The ACL replaces 20 existing State and Territory laws into one national law , the legislation was enacted in two main parts as Schedule 2 of the renamed Trade Practices Act 1974 (Cth) (TPA) - Competition and Consumer Act 2010 (Cth) (CCA) . Aforementioned this essay it will outline the key benefits of the implementation of the act. Furthermore it will critique the Act, whilst exploring the objectives of the legislation.
them with oxygen, give them a larger physical stoicism, tend to relieve us from being a nervous, dyspeptic set,
The role of law reform has responded rather effectively to a certain extent in protecting the rights of consumers. This is evident in the legal responses introduced to address issues of credit, marketing innovation and technology. These law amendments has effectively increase the protection of the rights of consumers to a certain extent, however loopholes still exist. Due to the increasing range of goods and services continues to grow and the failure of existing laws, the role of law reform has been significant in protecting the rights of consumers. Consumer laws were created to prevent deceitful activities, or unfair business practices, as well as serving a protection for weaker parties who are unable to protect themselves. However, laws were later reformed to enable customers to transact with confidence and protect suppliers, consumers from inappropriate business conduct and to reflect changed community values and circumstances.
Anti-trust laws are laws which prohibit anti-competitive behavior and unfair business practices. Their purpose is to make sure that businesses and consumers cannot be abused by powerful firms that hold or wish to hold a monopoly in the market. They also take into account certain ethical standards, and therefore can be considered quite subjective. Many specific strategies are outlawed by anti-trust laws, including price fixing (agreement on prices of uniform goods or services), predatory pricing (setting a low price in order to knock off competitors), and vendor lock-in (virtually forcing a consumer to buy from a certain supplier).
The Australian Consumer Law ensures that regulations are put in place to regulate fair-trading between businesses and consumer. It is a national law that guarantees what the rights consumers have when buying goods and or services. For instance in the Australian Consumer Law ‘Chapter 2- General protections Part 2-2 Unconscionable conduct ‘ person must not, in trade or commerce, engage in conduct that is unconscionable, within the meaning of the unwritten law from time to time’. Unconscionable conduct allows the parliament to regulate the way in which businesses do trading and makes them more accountable for their conduct. Unconscionable conduct ensures the interaction between a dominant and weaker party, which directly allows the parliament to prevent businesses using their power over weaker/disadvantaged members within society to sell products or services. Commercial Bank of Australia v
Sport has consistently grown and influenced society for hundreds of years. As is the case in many countries around the world, in Australia sport has proved to be a useful tool to promote social integration and build national identities. As a developed country with a structured political and economic system, sport organizations began to develop with the support of the Australian government in funding and infrastructure. Prior to British colonization, Aboriginals were the first to inhabit Australia instituting athletic events based on survival tasks. The environment in which they lived required a high level of physical ability in order to survive. The growth of sport in Australia is notably due to several significant sports moments that have influenced the country’s craving for more sports and high demand for success. The structure of Australian sports organizations help to develop high level of national pride. Track and Field has been one of the most tenured sports in Australia and has assisted in shaping the country’s sports culture. Australia has a long history of sport with a great deal support and success both in international competition and in the growth of domestic sport organizations.
...nvincing reforms such as the peer review panels in order to limit the potential biases that are mentioned above. However, these reforms do not remove the flaws within the Commission entirely. Several scholars have criticized its ineffectiveness and confirm how the faults remain in the system. Wills argues that such peer review does not apply to every single case; it only applies to 101 TEFU “where appropriate”, certainty not in cartel cases. Secondly, the commissioners are not prevented from discussion of the matter with the investigators while the case is under adjudication. This criticism is worth to be analyzed in more detail, a final decision of the proceedings are made by the college of commissioners who would receive a proposal from the Competition Commissioner, who would have been briefed by DG Competition officials, such as Chief Competition Economist and
Those factors are a growing market, capacity restraint, information about competitor’s prices, and meeting competition clause. In the situation where the market is growing then there is high chance of firms colluding to form cartels. As market grows, the profit also increases especially if the firms collude with each other. This encourages cartels to form as operating without cartel produce less profit than with cartels. Capacity constraint is another factor because in a competition situation, it is difficult for companies to produce at monopoly output. Therefore, to increase the output, collusion is necessary to supply monopoly output and that leads to higher profit for the firm. Information about rival’s price is also another facilitator because if the firm is able to gain access to its rivals price information, this makes it easier for the firm to monitor the rival to make sure that they follow through with the agreement of the price and output. If the firm deviates from the cartel, then other firms can punish them. Therefore access to rival’s information allows the cartel to function stably. The last factor meeting the competition clauses is also facilitator that ensures stability of collusion. It is contract term between the company and the customer concerning the price. The terms states that if the customer receives better price offer from another
Predatory pricing “is alleged to occur when a firm sets a price for its product that is below some measure of cost and forfeits revenues in the short run to put competitors out of business” (Sheffet p.163-164). The reason firms take the short term loss is because they hope to drive out competitors and raise prices to monopolistic levels. By doing this, they covered their short term loss to make even greater profits in the long term than they would have by not using predatory tactics (Sheffert). Predatory pricing became illegal under Section 2 of the Sherman Act. It has remained one of the more difficult allegations for prosecutors to prove, due to the complexity of determining the company’s actual intent and whether or not it the strategy is competitive pricing. According to Areeda and Turner, there are three ways to determine if a firm is implementing predatory pricing. First, a price above marginal cost is presumed lawful; second, a price below marginal cost is considered unlawful, except when there is strong demand; and third, average variable cost is considered a good proxy for marginal cost. This is a reason predatory pricing is still important today. The courts must decide whether or not companies are engaging in competitive prices for the good of the consumers or are using predatory tactics for the good of their own company. The purpose of this paper is to focus on the current legislation regarding predatory pricing, determining when there is predation in an industry and the cause and effect relationship it has on an industry.
The competition and consumer act aims to discourage price discrimination in the business environment if the discrimination could substantially reduce competition. An example of price discrimination would be Apple with the distribution of IPhone 5c around the world, the prices vary from $500-$1,500(local currency). The IPhone 5c is less-profitable for Apple but still the price range has a big gap e.g., in Singapore the iPhone costs $948, but in the UK it costs $529 . There are three types of price discrimination (first degree, second degree and third degree) and they all discriminate differently. The price discrimination in business will increase revenue, they will attract more consumers and will enable companies to stay in business. The consequences for price discrimination is that the manufacture/business will get sued by consumers for price discrimination especially when paying higher prices, decline in consumer surplus, there may be administrative costs of separating the markets etc. However, Price discrimination has a lot of impacts on consumers and business owner 's around the world but most importantly it affects people that have been discriminated over the price for the same
The purpose of this research is to identify and discuss the basis for the concerns and intervention of the regulator, in this case – European Union Antitrust Commission. Furthermore, the nature and effectiveness of the fines imposed will be evaluated.
A non competition agreement in an employment contract is a contract between the employee and employer that says the employee cannot work for competitors of the employer for a certain amount of time after the employee has left the company. The best way to determine if the courts have something enforceable is with this question, does the “agreement reasonably balance the employer’s legitimate business interests with the employee’s freedom to choose his or her employment” (Fryberger). These agreements are here to protect the employer’s confidential information and most importantly, the entirety of the business. These non competition agreements help keep the employer in business, but there are certain circumstances that the courts will not enforce these agreements, such as if the agreement is too unreasonable and does not allow the individual to make a living, this could mean the duration of time they are restricted for and/or restrictions on where they can’t work in that geographic