Predatory Pricing

Quo vadis? Towards an effective predatory pricing provision Garth Campbell* The level of criticism enjoin at s 46 of the Trade Practices Act 1974 (Cth) for its inability to capture predatory pricing indicates that smaller businesses are highly concerned about this practice. Such criticism reached its peak spare-time activity the High Courts decision in Boral Besser Masonry Ltd v ACCC (2003) 215 CLR 374, which rejected a claim of predatory pricing. Since then, the Birdsville Amendment and other late amendments to s 46 have attempted to more efficaciously capture predatory pricing by de?ning it more accurately. However, it carcass to be seen whether these amendments will be successful. This article assesses the application and authorization of the Birdsville Amendment by applying it to the facts of the Boral decision, in effect, re-deciding the case on the current law, and attempts to de?ne the characteristics of a truly effective predatory pricing provision. INTRODUCTION ravening pricing usually occurs when a large mart actor unfairly lowers its prices so as to damage its competitors, drive them from a market, or deter them from entering a market, and then raises its prices to force back advantage of the reduction in competition it has generated.

Since the adoption of the Sherman fair Act 1890 (US), jurisdictions around the world have attempted to punish predatory pricing. However, determining whether pricing is unfair or predatory, as distinct from legitimate and militant, is a difficult task. Legitimate competitive pricing can also damage competitors, and is hard to label from predatory pricing. The danger inherent in regulating this bailiwick is that regulations to penalise predatory pricing may also unwittingly penalise legitimate competitive pricing. Such regulations would have a serious and broad based anticompetitive effect on the deliverance as a whole due to the central give-up the ghost that competitive pricing performs in any free market economic... If you want to get a full essay, order it on our website: Orderessay

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