Friday, January 16, 2009
Product Bundling: The Implications of the Recent Australian Full Federal Court Decision in ACCC v. Baxter Healthcare
Posted by D. Daniel Sokol
ABSTRACT: The Australian Full Federal Court has recently issued its decision in ACCC v. Baxter Healthcare. This decision is the first time that bundling has been found to be a misuse of market power under section 46 of the Trade Practices Act 1974 (Cth). The decision therefore has significant implications for any firms that are considering bundling products. The judgments of the Federal Court and Full Federal Court also show the reluctance of Australian judges to apply detailed economic tests to assess bundling, but they indicate that Australian judges instead tend to apply informal tests that have a similar effect.