Preview

The Greenbik Case

Good Essays
Open Document
Open Document
675 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Greenbik Case
Withholding Supply
There could be a stronger case for withholding supply under s 98 if unsuccessful under s 46 . Greenbike is treating Cycloplatform unfavourably with respect to timing of delivery of replacement parts and this is a violation of s 98(1)(c) .
Predatory Pricing
Predatory pricing which breaches CCA if advantage is taken by a competitor with substantial market power for the anti-competitive purpose to provide services below cost price to drive other competitors from market. The facts do suggest signs of predatory pricing as regardless of how much discounting Cycloplatform gives it is still unable to obtain tenders with city councils. There is the possibility that the three major competitors provide lower quality services and
…show more content…
The conclusion drawn from Arnotts Ltd v TPC was it could not be established the appropriate market was wider than just biscuit and subsequently was found to have breach s 50 . Similarly, Cycloplatform cannot claim by acquiring the two competitors it was had a market outside of bike sharing therefore the merger would not be successful. Horizontal mergers have the effects of concentration of market power, facilitating collusive conduct and leading to output restriction. The ACCC would also take into account factors listed in s 50(3) in determining whether the acquisition would likely have the effect of substantially lessening competition. The main problem with horizontal mergers is it not only lessens competition but harms consumers. The remaining firms following the merger have the ability to act in a coordinate manner on certain competitive dimension via coordinated interaction. As the ACCC is most concerned about consumer impacts implications such higher prices, lower quality and a reduction in choice would warrant most horizontal mergers …show more content…
Authorisation is granted in cases where public benefits overshadows any anti-competitive harm.
Remedies
Common remedies for breach of contravention includes but is not limited to pecuniary penalties , damages and divesture . In some circumstances, non-punitive orders may be imposed.

Conclusion:
Overall, it is more likely Jane would have greater success by exercising rights Cycloplatform holds under the CCA as there are numerous problems associated with the merger. Cycloplatform may have a case for predatory pricing if more detailed had been provided. It is advisable for Jane to look further into discriminatory pricing and withholding supply as they appear to be the better options to

You May Also Find These Documents Helpful

  • Good Essays

    PRETEST 2

    • 702 Words
    • 7 Pages

    ____ is a remedy requiring a breaching party to carry out the terms of the contract.…

    • 702 Words
    • 7 Pages
    Good Essays
  • Better Essays

    For instance, a manufacturer merging with a supplier of essential components or raw materials or with a distributor or retailer that sells its products. The goal of vertical mergers is to improve efficiency or reduce costs. Vertical mergers can help to secure access to critical supplies and help to reduce overall costs by eliminating the costs of finding suppliers, negotiating deals, and paying full market prices. It can improve efficiency by synchronizing production and supply between the two groups and ensuring that supplies are available when you need them. A vertical merger can help deal with competitors by making it difficult for competitors to obtain vital supplies, therefore, weakening existing competitors and increasing barriers to the entry of new competitors. Let 's take a look at the technology advancement implemented for the creation of a new iPhone. Apple will merge with the suppliers and distributors for the benefit of having the production accessible for the company when manufacturing and distributing the…

    • 954 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    CVS BUSINESS PROPOSAL

    • 1892 Words
    • 8 Pages

    The market structure of CVS Pharmacy is an oligopoly. It is a market structure in which a small number of organizations sell either differentiated or standardized products in which other organization’s entry is difficult. In this market structure, the control of the firm is limited over price of the product due to mutual interdependence (with the exception of when there is conspiracy surrounded by the organization) and in which there is a non-pricing rivalry (McConnell and Brue, 2004). The oligopoly turn out is the most common structure of big -business as the establishment of trust was limited in the United States. Evasion of pricing rivalry has turned out to be nearly automatic with four or five larger firms accountable for most of the output of every industry. If an organization were to drop the prices, it is expected that their competition will do the same and all will undergo a lower profit.…

    • 1892 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    There are many benefits to a merger between firms. These include: exploiting economies of scale, diversification and of course increasing shareholder wealth. The reason for mergers are predominantly monetary. These benefits can either be competitive or anti-competitive, when a collusion is anti competitive a governing body should intervene. Anti competitive behaviour would reduce the level of competition within a market, this could lead to exploitation of consumers and workers. It would increase the inefficiencies within a market.…

    • 1242 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Business Law

    • 2364 Words
    • 10 Pages

    In most cases, a breach of contract takes place in circumstances whereby one party does not perform exactly and precisely his or her contract obligations. These cases have been recorded mostly in the real estate industry. This is because the majority of sellers normally wish to vacate the house they are selling hastily. The Washington Mutual Bank victimized its borrowers through overcharging for insurance mortgage substitution.…

    • 2364 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Prompt 3

    • 331 Words
    • 2 Pages

    Markets have four different models which are perfect competition market, monopolistic competition, oligopoly, and pure monopoly markets. Each market has its own characteristics in terms of barriers, price control, and the kind of products. An oligopoly market can be defined as a market which has a few large producers of homogenous or differentiated products. Moreover each firm is affected by the decisions of its rival and must take those decisions into consideration when setting its own price and quantity. Regulating the merger activity by governments at oligopolies markets could be economically and socially beneficial for them.…

    • 331 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Growing through integration can have a positive effect on the competitiveness of a business in that firms are able to buy out or merge with other large powers in the market to make a ‘super power’ in the market. This ‘super power’ gains a larger % of the market as the two original market shares of the firms are joined together. A recent example of this is the merger between orange and T-mobile in 2010. This merger saw two of the UK’s biggest mobile phone network providers join together and as a result gain a combined 30 million customers and overtake O2 as the market leaders with 37% market share. Along with this, the merge allowed customers of the two companies to be able to receive the signal of both of the networks helping to provide a better signal range for the whole of its customer base. The integration of the two businesses therefore helps both orange and T-mobile to provide a better service to their customers which could tempt customers away from their closest rival O2 and gain them even more market share. Therefore the merger has allowed orange and T-mobile to compete with O2 on quality making them more non-price competitive and more desirable to the consumer. Along with being able to compete on areas other than price the merger could mean that orange and T-mobile are in fact able to compete on price as well. The two companies may be able to benefit from further economies of scale thus being able to drive their average unit cost of production down and charge less for their products. This again will go…

    • 1249 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Response to Green

    • 1019 Words
    • 5 Pages

    The short story, Green, by Anne Enright, is about an organic farmer who now bears the fruit of her many years of devoted labour in organic produce. The story describes her emotions towards a woman named Gertie, a woman who criticized her organic vegetables when her business was poor, but orders the vegetables when her business is booming.…

    • 1019 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    A merger (or acquisition) is a combination of two companies where one corporation is completely absorbed by another corporation. The smaller or less known company loses its identity and becomes part of the more important corporation, which retains its identity. Mergers can be for competitive reasons--buying out the competition or either a attempt to create firms large enough to exercise more market power. Federal and state laws regulate mergers and acquisitions. The Federal Trade Commission (FTC) or the United States Department of Justice (DOJ) has to approve all mergers between large companies to determine the possible effects on competition. Regulation is based on the concern that mergers could potentially eliminate competition between the merging firms.…

    • 896 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    A breach of contract occurs when a party’s duty to perform under a contract is absolute, and that party fails to perform. The duty can be absolute because it was not conditional in the first place; any conditions were either excused or fulfilled; or the duty was not discharged.…

    • 955 Words
    • 3 Pages
    Better Essays
  • Better Essays

    European Commission. (2010, 04 01). Competition Handbooks, EU Competition Law, Rules Applicable to Merger Control. Consulté le 10 12, 2013, sur Europa.eu: http://ec.europa.eu/competition/mergers/legislation/merger_compilation.pdf…

    • 2342 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    Adidas reebok mergers

    • 1155 Words
    • 5 Pages

    Mergers and acquisition commonly are two ways to pursue strategies. When two companies come into a mutual conclusion, mergers and acquisition can derive both advantages and disadvantages for the company. In Adidas and Reebok mergers, it can be seen that both companies facing pros and cons.…

    • 1155 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    COMM 391 BUSINESS ENVIRONMENT ANALYSIS AND REVENUE MODEL Introduction to Management Information Systems Winter 2013 – Term 2 Learning Objectives For discussion … 1. Describe Porter’s five forces model and…

    • 1654 Words
    • 7 Pages
    Satisfactory Essays
  • Powerful Essays

    nbnmb

    • 6037 Words
    • 25 Pages

    References: Anon (2007), March, [Online], Available: Failure to comply with UK or EU competition law can have very serious consequences. [5 November 2013].…

    • 6037 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    PART III. Control of Uncompetitive Practice 17. 18. 19. 20. 21. Provisions of agreement having effect of lessening competition. Agreements containing exclusionary provisions void. Existence of dominant position. Abuse of dominant position. Action in relation to abuse of dominant position.…

    • 13206 Words
    • 53 Pages
    Powerful Essays