Competition

  • Competition leads to lower prices, better quality products and services, and more choice for consumers.
  • To preserve the benefits of competition, the Competition and Consumer Act 2010 bans business behaviours that substantially damage competition.
  • Businesses can seek an exemption for potentially anti-competitive behaviour.

Competition and anti-competitive behaviour

The Competition and Consumer Act 2010 bans business behaviours that damage competition. Competition leads to lower prices, more choice and better products and services.

Cartels

It’s illegal for businesses to agree to act together in a cartel instead of competing.

Collective bargaining and collective boycotts

Competitors that join together to negotiate terms, conditions or prices with a supplier or customer need an exemption, or they risk breaking competition law.

Cooperation among businesses

It’s illegal for businesses to make contracts, arrangements or understandings, or engage in concerted practices that substantially lessen competition.

Exclusive dealing

It can be illegal to restrict a customer or supplier’s freedom to choose what it buys or sells, who it does business with or where it trades.

Minimum resale prices

Suppliers can recommend resale prices for their goods and services, but they can’t stop resellers advertising or charging a lower price.

Misuse of market power

Businesses with substantial market power must not misuse that power to stop other businesses competing on their merits.

Exemptions

A business that is planning activity that will or may breach competition law can seek an exemption.

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