The Australian Competition And Consumer Act

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The Australian Competition and Consumer Commission (ACCC) is an administer of the competition and Consumer Act (CCA) which is to prevent collusion among the firms and to prevent the individual firm which break the market equilibrium with their market power. Well competitive market would deliver efficiency costs, faster innovation, prevention of unduly concentrated markets, business freedom, wealth distribution, and enhancement of international competitiveness. Therefore, the ACCC is playing a crucial role in Australia, and their activities can be divided into four categories; (1) the policies for anti-competitive conduct and anti-competitive practices, (2) the mergers policy, (3) the consumer protection policy, and (4) four pillars policy.…show more content…
The economics of supply and demand suggest that output restriction will increase demand which in turn will increase prices. Consequently, output restriction can affect prices in much the same way as price fixing. Those four forms of cartel conduct exist when the individuals or businesses agree to act together for competition fairly and maintain profits. Moreover, there are other anti-competitive practices such as boycotts and misuse of market power. A boycott is an agreement between two or more parties not to deal with a third party, or to do so only upon certain terms. On the other hand, misuse of market power is the individuals or businesses who use their market power for the purpose of eliminating or substantially damaging a competitor or make barriers to enter into the market. The ACCC educates consumers and businesses as to their right and responsibilities under the CCA. (2) To prevent substantial lessening and dominance of competition, the CCA prohibits mergers when that would have the effect, or be likely to have the effect. One of the main ways in which mergers can lessen competition in through unilateral effects. The unilateral effects which means the merged firms’ unilateral market power is increased and it leads to remove or weaken competition. In determining whether unilateral effects arise and whether they are to lessen the competition, the ACCC considers all of the merger functions under in s50
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