New Universal Predatory Price Laws for Bearings

Although predatory pricing laws are already operational within OECD Countries, a new format with stronger powers to combat corporate crime is now being considered.

The new LAW is designed to prohibit any company with a “substantial share” of a market from selling goods or services below cost for an extended period of time if it is done with the purpose of substantially damaging a competitor.

A leading Government Treasurer stated “Where you have market share and you engage in pricing for the purpose of reducing competition or for the purpose of restricting competition in one way or another, that is contrary to the (Trade Practices) Act.”

Key Points

- Argument against this new proposed legislation from the “Law Council” stating the amendment will reduce the extent and frequency of discounting.

- Argument for the changes from the “Small business Chamber” welcoming this introduction.

The Bearing Industry will need to adjust certain practices to conform to this new proposed legislation especially when tendering for 2 or more bearing items in one quotation, if one item is lower than production cost to obtain the total order.

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