Misuse of market power refers to the abuse of a dominant position in a market by a company or individual, in order to eliminate or restrict competition. This can include activities such as predatory pricing, exclusive dealing, and refusal to supply.
In Australia, the misuse of market power is governed by the Competition and Consumer Act 2010 (Cth) which is the federal legislation that applies throughout Australia. The Act prohibits companies or individuals from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition.
The Act also prohibits companies with substantial market power from engaging in certain types of conduct that would be considered misuse of that market power, including exclusive dealing, price discrimination, and predatory pricing.
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the Act and for promoting competition and fair trading in markets for the benefit of consumers, businesses, and the community.
It's important to note that the Act also includes provisions to protect small business, such as the prohibition of misuse of market power against small business and the prohibition of anti-competitive contracts and arrangements involving small business.