Trade Practices Legislation: An Alternative View

Abstract

In the Trade Practices Act, 1974, Australia has its first legislation that truly seeks to control the gamut of restrictive trade practices. The legislation grafts the direct prohibtions of American legislation onto the registration and ad hoc, case-by-case examination of the British System. In the United States and Britain anti-trust or restrictive trade practices law (the terms are used here interchangeably) are concerned with the control of private economic power. Economic theory has traditionally held that a market ? and competition ? is the best way of satisfying consumer wants; that unconstrained monopoly is harmful. Thus, within the so-called free enterprise economies competition is the main ? though by no means the only ? accepted expedient for bringing about social control. As Galbraith puts it, ... the anti-trust laws were put on the statute books to preserve the power of the market against those who might subordinate it to the purpose of monopoly.1 That these laws are successful, however, is largely a matter of faith. In various guises trade practices legislation has been in force for over 80 years.2 It operates now in an economic environment substantially different from any its founders could have foreseen, where the pressures toward greater industrial concentration ? mainly those of technology ? are stronger than ever before. Has anti-trust improved industrial efficiency? Is this legislation an The author wishes to thank Mr Bruce Donald, Dr K. Rivett and Associate Professor D. Stalley for their helpful comments. Any responsibility, of course, is mine.