Tertiary education program

Introduction

A business with a substantial degree of power in a market must not engage in conduct that has the purpose, effect or likely effect of substantially lessening competition in that market or in another market in which it, or a related body corporate, buys or sells goods or services. This behaviour is referred to in the CCA as ‘misuse of market power’.

Businesses with substantial market power are entitled to engage in legitimate competitive activity, even where doing so causes harm to their smaller rivals. However, powerful businesses are prohibited from misusing their power in the market in order to damage the competitive process.

It’s important to understand the forms of anti-competitive conduct that a business with market power must not engage in. If you work for a smaller business you will benefit from understanding how the prohibition may protect your employer against anti-competitive conduct engaged in by the business's suppliers, customers or larger competitors.