Healthy competition occurs in a market where businesses increase profits through honest means such as:

• being innovative and continually improving their products and services;
• engaging in effective marketing campaigns to promote their products and services; and
• striving to keep costs low so that their products and services are competitively priced.

Companies and individuals that seek to boost profits by engaging in anti-competitive behaviour not only affect those businesses that are trying to make an honest profit but also cheat consumers from getting the best deal.

The Competition and Consumer Act 2010 (Cth) (previously the Trade Practices Act 1974) aims to protect competition by prohibiting anti-competitive conduct. The Australian Competition and Consumer Commission (ACCC) has responsibility for making sure this legislation is complied with.

The conduct prohibited in the Act includes:

• agreements with exclusionary clauses or clauses which affect competition;
• anti-competitive exclusive dealing arrangements;
• collective bargaining and collective boycotts;
• mergers and acquisitions which reduce competition;
• misuse of market power;
• the operation of cartels; and
• maintaining the resale price.

Our Legal Guide explains this prohibited conduct in further detail and provides an insight into the substantial powers of the ACCC under the Competition and Consumer Act 2010 (Cth). This Legal Guide also provides information on how to access ACCC authorisations in situations where an exemption from prosecution is available under the legislation. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.