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Article: Product Bundling: The Implications Of The Recent Baxter Decision.(Australia. Competition and Consumer Commission)(Baxter Healthcare Proprietary Ltd.)
- Article from:
- Mondaq Business Briefing
- Article date:
- December 15, 2008
- Author:
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The Full Federal Court has recently issued its decision in ACCC v Baxter Healthcare. This decision has significant implications for any firms that are considering bundling products. It is particularly relevant where a firm is bundling one product in relation to which it has a high market share with another product for which it faces greater competition.
IMPLICATIONS OF THE BAXTER DECISION ACCC v Baxter Healthcare Pty Ltd is the first time that bundling has been found to be a misuse of market power under section 46 of the Trade Practices Act. The Full Federal Court's decision on 11 August 2008 illustrates the risks involved in implementing a bundling strategy. In ...