In this session I refer to a recent purchase of a book bought at a higher price than that available from a free-rider. We then proceed to a discussion of the pro-and con arguments in relation to vertical restraints and how these are
reflected in the TPA. We see that these arguments are especially finely balanced in relation to the exclusive dealing provisions, although the law relating to third line forcing seems destined to remain somewhat anomalous.

As regards the section 48 per se prohibition of resale price maintenance, this reflects a view that this particular form of vertical restraint is inherently anti-competitive and, were it not illegal, could be used to disguise horizontal price-fixing agreements between cartel members.

We conclude this conversation by applying competition law principles to explain the cost, scarcity and service standards of Melbourne’s taxis and why it sometimes seems to require the powers of a Harry Potter to get one.

Click here to listen to the fireside chat.