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ARTICLE · 06 SEPTEMBER 2010

Baxter Fine A Warning For Those Who Bundle Products Or Services

Clayton Utz
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Companies with a significant market share need to be careful when bundling the supply of their products, where the reason for the bundling is to seek an advantage over their competitors, and competitors are known to be unable to match the offer by a competitive competing bundle.

AustraliaAntitrust/Competition Law
Michael Corrigan
Michael Corrigan
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The Federal Court's decision to fine Baxter Healthcare Pty Ltd $4.9 million for breaches of the misuse of market power and exclusive dealing provisions of the Trade Practices Act 1974 is a warning to any company which bundles products or services together (Australian Competition and Consumer Commission v Baxter Healthcare Pty Ltd [2010] FCA 929).

Companies with a significant market share need to be careful when bundling the supply of their products, where the reason for the bundling is to seek an advantage over their competitors, and competitors are known to be unable to match the offer by a competitive competing bundle.

Baxter's offer to bundle products

The breaches arose when Baxter responded to requests for tender by State Purchasing Authorities, acting on behalf of state hospitals and health facilities, for the supply of two different products, sterile fluids and peritoneal dialysis fluids (PD products). Both sterile fluids (used for re-hydration

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