In an important decision regarding the misuse of market power, the Federal Court late yesterday decided unanimously that Boral Besser Masonry's pricing below manufacturing costs breached the ‘misuse of market power provisions' (s.46) of the Trade Practices Act (TPA).
Australian Competition and Consumer Commission (ACCC) chairman, Professor Allan Fels, says the issue has been considered by the courts only on a few occasions and, as such, the decision clarifies when predatory pricing constitutes a misuse of market power under Act.
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