BTF1010 Study Guide - Final Guide: Baxter International, Market Power, Product Bundling
6 Jun 2018
School
Department
Course
Professor
TYPE OF RESTRAINT
IS THE SUBSTANTIAL
LESSENING OF
COMPETITION
REQUIRED?
S47(2) and (3) prohibit supplier from engaging in
exclusive dealing
YES
S47(4) and (5) prohibit a buyer from engaging in
exclusive dealing
YES
S47(6) and (7) prohibit a supplier from engaging in a
particular type of exclusive dealing called third line
forcing.
NO
S47(8) and (9) prohibit a firm from engaging in
exclusive dealing where the exclusive dealing is linked
to granting, renewing, or terminating a lease or license
over land, or a building, or part of a building; the types
of exclusive dealing prohibited are almost the same as
those covered by S47(2)-(7)
All types require proof of
substantial lessening of
competition, except where the
restraint involves third line
forcing.
Exclusive dealings can be authorised S88(8) and notified by S93
S47 ANTI-COMPETITIVE DISTRIBUTION PRACTICES
Suppliers and buyers are not permitted to engage in exclusive dealing practices if it will lead
to substantial lessening of competition. Unless it has been authorised by, or notified to, the
ACCC.
Suppliers cannot required buyers to obtain products from third parties unless it has been
authorised by, or notified to, the ACCC (Third line forcing).
Document Summary
S47(2) and (3) prohibit supplier from engaging in exclusive dealing. S47(4) and (5) prohibit a buyer from engaging in exclusive dealing. S47(6) and (7) prohibit a supplier from engaging in a particular type of exclusive dealing called third line forcing. S47(8) and (9) prohibit a firm from engaging in. Exclusive dealings can be authorised s88(8) and notified by s93. Suppliers and buyers are not permitted to engage in exclusive dealing practices if it will lead to substantial lessening of competition. Unless it has been authorised by, or notified to, the. Suppliers cannot required buyers to obtain products from third parties unless it has been authorised by, or notified to, the accc (third line forcing). Ford motor co of australia v ford sales co of australia (1977) Ford required distributors to enter into sole distributorship agreements. There was product differentiation, substantial barriers to entry and aggressive product promotion.
