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Ccycloplatform Abuse Of Power Essay

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Part B: Abuse of power As a new entrant, Cycloplatform’s inability to increase market share and tenders could be explained by other competitor’s economies of scale and city council’s preference on the brand name of larger bike sharing services. There is no concern on the market share of the 3 major competitors as the CCA is focused on abuse of power over the accumulation of power through aggressive competition. Under the assumption the tenders are taken by the other three major competitors it is possible for market division to exist between the companies but there is no empirical evidence. There is also the possibility of abuse of power by competitors under s 46 . Despite this, competition law does not interfere with competitive practices…show more content…
This has resulted with Cycloplatform’s maintenance contracts unworkable and losing revenue alluding to implications of deterring or preventing Cycloplatform from engaging in competitive conduct in the market under s 46(1)(c) . Greenbike’s use of its substantial market power would breach the CCA on the condition it was for the purpose of eliminating or substantially damaging a competitor under s46(1)(a) . Furthermore, it is not necessary to establish the relevant purpose was the only purpose or the main purpose. The two-step process taken into consideration in the Melway case subsumes whether the disputed conduct was materially facilitated the firm’s possession of a substantial degree of power and any rational business justification of the firm’s conduct. It does appear likely that Greenbike’s action was facilitated by its market power but there are no conclusive proof as even smaller competitors could do the same if their parts are exclusively made. However, there is no rational justification for the difference in
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