Publications
Submission to Senate Inquiry into Trade Practices Amendment (Blacktown Amendment) Bill 2009
SUBMISSION
There are a number of problems associated with legislating against geographic price discrimination.
In this paper Sinclair Davidson concentrates on two problems. The first is the practical problem of cost differentials across geographic space. Successful implementation of this legislation would require the ACCC undertake extensive cost analysis in order to determine whether or not a violation of the Act has occurred.
The second problem is philosophical - prices are not just determined by costs, but rather by market conditions.
Consumers do not benefit from low costs per se, but rather from profitable businesses. This legislation would effectively constitute a form of price control that would not ultimately benefit the Australian community.