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ARTICLE · 06 AUGUST 2013

International price discrimination and parallel importing - Time to take a deep breath?

Corrs Chambers Westgarth
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Price discrimination is a legal and accepted business practice in Australia.

AustraliaAntitrust/Competition Law
Mark McCowan
Mark McCowan
Alistair Newton
Alistair Newton
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Price discrimination – charging different prices in different territories or to different customer segments – is a legal and accepted business practice in Australia.

However, in recent months, the international price discrimination practices of suppliers to Australian grocery retailers, and the parallel importing strategies adopted (or threatened) by those retailers in response, have emerged as key issues within the broader media debate about competition in the Australian grocery sector.

This article examines the underlying policy issues and potential competition law concerns that can arise from the tit-for-tat strategies of suppliers and retailers. We also consider the recent calls for changes to the Competition and Consumer Act 2010 (CCA) and conclude that any legislative response to international price discrimination is likely to have consequences for competition and efficiency and should be approached with extreme caution.

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