Third Line Forcing Is On The ACCC´s Radar

In a timely reminder to business, the Australian Competition and Consumer Commission has commenced proceedings against 28 parties in the telecommunications and finance industries, alleging third line forcing and misleading and deceptive conduct arising out of bundled services deals.

Third line forcing is the practice of supplying goods or services (whether at all, at a particular price or with a discount or rebate) on condition that the purchaser also acquires goods or services from another party. Third-line forcing is a form of exclusive dealing which is always illegal, regardless of its effect on competition. The prohibition is frequently overlooked or misunderstood by businesses, which are therefore at significant risk of inadvertently breaking the law. The ACCC's routine prosecution of companies engaging in third-line forcing highlights the seriousness with which such breaches may be treated.