Anti-competitive conduct

Part IV of the Trade Practices Act 1974 (the Act) prohibits various anti-competitive practices that limit or prevent competition. It aims to foster the competitive environment necessary to give consumers  diversity of choice in price, quality and service for goods and services. For example, Part IV prohibits specified cartel conduct and other forms of collusive conduct among competitors that substantially lessen competition in a market. A reduction in competition that may occur as a result of the collusion might allow some traders to push prices up and lower the quality of the goods and services they offer to consumers.

Some anti-competitive conduct is prohibited on the basis that it has particular anti-competitive purposes or effects (i.e. cartel conduct such as price fixing or bid rigging), while other conduct is prohibited if it substantially lessens competition. A substantial lessening of competition may occur, for instance, when the ability of buyers to shop around for a deal that suits them is significantly diminished by an anti-competitive agreement among suppliers.

There are some circumstances in which an individual decision by a supplier to refuse supply is unlawful under the Act. These include a misuse of market power, third line forcing, boycotts, resale price maintenance and placing limitations on buyers and resellers that substantially lessen competition. Further information on these restrictive trade practices can be found in the ACCC publications, Refusal to deal, Summary of the Trade Practices Act: and additional responsibilities of the ACCC under other legislation and Small business and the Trade Practices Act.