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Vertical Agreements Australia

The Commission`s findings constitute a factual inquiry and have little precedent. However, one observation is useful as an example of the Commission`s approach. [241] In determining the authorisation and notification of the effects of vertical restrictions on competition – contrary to their net benefits – the Commission took into account the duration of the restrictions (often intended to facilitate the market transition)[243] and, in particular, the market power of the producer[244] [often with regard to the number of alternative distributors]. [245] The Commission has also tended to view geographic restrictions at the retail level as anti-competitive, while it was less favourable at the level of wholesale trade. [246] The ACCC has previously dealt with selective distribution systems and other vertical restrictions imposed on suppliers in accordance with the general provisions of the Non-Competition Act, However, it has not done so in recent times with respect to online platforms, which prevent behaviour that results in a significant reduction in competition (in ACCC/Fila Sport Oceania (2004) ATPR 41-983 and TPC/CSR (1991) ATPR 41-076. Vertical agreements between a supplier and a platform for which the vendor agrees to charge on that platform a retail price that is not higher than the retail price charged by the seller on other platforms are called “platform parity agreements” (APPA). This can raise competition issues when the retailer and the platform operate within an agency relationship and the platforms compete with each other by offering lower commissions to the supplier. The interaction between vertical agreements, horizontal agreements and agencies was examined in the Flight Centre and ANZ cases. The effects of vertical restrictions on blocking access to competing trademarks are considered by the Commission and the Tribunal to be a key issue. However, the benefits of vertical restrictions to improve the efficient functioning of the market have been recognized, particularly when it comes to promoting investments and market activities that would not otherwise take place. The exclusion of transaction coordination within a specialized and vertically controlled governance structure is that vertical control can also be a mechanism for increasing barriers to entry due to increasing financial requirements for market entry. [156] A new entrant may be called upon to propose vertical restrictions to attract the necessary distributors, as independent distributors will seek cost reductions on transactions and vertical control and other benefits of vertical control within a distribution chain so that they can compete with other vertically controlled distributors.

[157] In the years Marbon Chemicals Ltd, Revinex Australia Ltd and Revertex Industries (Aust) Pty Ltd, the Commission approved agreements to purchase a certain minimum percentage of raw materials and to limit the supply of competitive products to persons other than the distributor. [352] The Commission considered that better economic use of resources and greater efficiency of enterprises were relevant public benefits. [353] The agreement provides for an increase in the ability to achieve technical efficiency gains while waiting for market growth. [354] In such an agreement, the Commission considered that this was more competitive competition in the long run, as it would lead to competition with vertically integrated competitors, taking into account the fact that the distributor was almost congested next to a competitor with considerable overcapacity, while the producer would not have access to technologies that the distributor could provide. , probably withdraw from the market. [355] Are they subject to the assessment of vertical restrictions in certain industrial sectors (motor vehicles, insurance, etc.)? Please indicate the rules and the areas that cover them.

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