Misuse of market power
The CCA prohibits the misuse of market power. A business with substantial market power must not engage in conduct that has the purpose, effect or likely effect of substantially lessening competition. This ban applies to conduct engaged in by such a business when dealing with customers, suppliers and competitors.
It is not a breach of the CCA to have a large market share or to have market power. What section 46 of the CCA is concerned with is whether a business with substantial market power has engaged in conduct that damages the competitive process.
To determine whether there has been a misuse of market power, the courts will consider the following questions:
- Does the company have substantial market power?
- Is it engaging in conduct with the purpose, effect or likely effect of substantially lessening competition?