Certain business practices that limit or prevent competition are against the law. It is important that businesses understand their rights and obligations at all times and, in particular, when dealing with wholesalers, suppliers and other businesses.
Anti-competitive conduct
Section 45 of the Competition and Consumer Act prohibits contracts, arrangements, understandings or concerted practices that have the purpose, effect or likely effect of substantially lessening competition in a market, even if that conduct does not meet the stricter definitions of other anti-competitive conduct such as cartels.
Cartels
Businesses that make agreements with their competitors to fix prices, rig bids, share markets or restrict outputs are breaking laws and stealing from consumers and businesses by inflating prices, reducing choices and damaging the economy.
Electricity market misconduct
Part XICA of the Competition and Consumer Act applies to all electricity generators and to retailers that generate and supply electricity to small customers. Part XICA establishes three specific prohibitions targeting certain conduct in electricity markets. The prohibitions relate to retail pricing, financial contract market conduct and conduct in electricity spot markets.
Exclusive dealing
Broadly speaking, exclusive dealing occurs when one person trading with another imposes some restrictions on the other’s freedom to choose with whom, in what, or where they deal. Exclusive dealing is against the law only when it substantially lessens competition.
Minimum resale prices
A supplier may recommend that resellers charge an appropriate price for particular goods or services but may not stop resellers charging or advertising below that price.
Misuse of market power
A business with a substantial degree of power in a market is not allowed to engage in conduct that has the purpose, effect or likely effect of substantially lessening competition in a market. This behaviour is referred to as ‘misuse of market power’. It is not illegal to have, or to seek to obtain market power by offering the best products and services.
Refusal to supply products or services
In most cases, businesses have the right to decide who they do business with. There are a few circumstances, where a suppliers' refusal to supply is breaking the law.
COVID-19 & anti-competitive behaviour
The COVID-19 pandemic may have changed how businesses you deal with are behaving to respond to the pandemic. This guidance aims to help you to identify what might be anti-competitive behaviour and what you can do.