Section 46(1) and 46(1AA) of the TPA : the struggle of the small against the large

Corones, Stephen G. (2009) Section 46(1) and 46(1AA) of the TPA : the struggle of the small against the large. Australian Business Law Review, 37(2), pp. 110-123.


The purpose of this article is to highlight the conflict in the policy objectives of subs 46(1) and subs 46(1AA) of the Trade Practices Act 1974 (Cth) (TPA). The policy objective of subs 46(1) is to promote competition and efficient markets for the benefit of consumers (consumer welfare standard). It does not prohibit corporations with substantial market power using cost savings arising from efficiencies such economies of scale or scope, to undercut small business competitors The policy objective of 46(1AA), on the other hand, is to protect small business operators from price discounting by their larger competitors.. Unlike subs 46(1), it does not contain a ‘taking advantage’ element. It is argued that subs 46(1AA) may harm consumer welfare by having a chilling effect on price competition if this would harm small business competitors.

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ID Code: 31104
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: small business competitors, Section 46 Trade Practices Act 1974(Cth), consumer welfare, market power, small business operators
ISSN: 0310-1053
Subjects: Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100) > Law not elsewhere classified (180199)
Divisions: Current > QUT Faculties and Divisions > Faculty of Law
Current > Research Centres > Law and Justice Research Centre
Current > Schools > School of Law
Copyright Owner: Copyright 2009 Lawbook Company/Thomson Reuters (Australia/NZ)
Deposited On: 02 Mar 2010 22:19
Last Modified: 29 Feb 2012 14:06

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