Appears that Competition commission are useless as usual. Long response that says nothing and shows that they don't even understand the issue. Funny they have written this rubbish to a Professor of Economics, if any of my students had this little understanding I'd fail them out of hand. ----------------------------------------------------------------------------------------------------------- Dear Professor Poyogo-Theotoky, Thank you for your email of 26 September 2011 to the Australian Competition & Consumer Commission (the ACCC) regarding the Microsoft’s upcoming Windows 8 operating system. Your reference number for this matter is 1154451. The role of the ACCC is to ensure compliance with the Competition and Consumer Act 2010 (Cth) (the Act), which is designed to encourage fair trading and discourage anti-competitive conduct through a specific set of competition and consumer protection rules. One of the Act’s aims is to foster fair markets, that is, markets where normal competition can continue without being hindered by unfair and illegal market practices. Such illegal market practices include price-fixing, market-sharing, resale price maintenance, misuse of market power and certain forms of exclusive dealings/boycotts. Section 47 of the Act prohibits exclusive dealing. Broadly speaking, exclusive dealing occurs when one person trading with another imposes some restrictions on the other’s freedom to choose with whom, in what, or where they deal. Exclusive dealing is only a breach of the Act where the conduct has the purpose, effect or likely effect of substantially lessening competition in the market. In an assessment of the effect of the conduct on competition, it is not enough merely to show that an individual business has been damaged. The wider market for the particular product or service must be considered. The situation you described may raise issues of exclusive dealing, but it is unclear from the details provided whether it would be likely to meet the competition test described. In assessing any complaint, staff of the ACCC would generally determine whether or not the matter falls within the jurisdiction of the Act, whether or not there appears to have been a breach of the Act, and if so, whether the impact of the conduct is so serious and widespread that it is appropriate that the ACCC should take some action. It should first be noted that in general, investigations are conducted confidentially and the ACCC does not comment on matters it may be investigating. Further, complainants will only be contacted by the ACCC where clarification or additional information is sought. It is important to note that the ACCC cannot pursue all the complaints it receives. While all complaints are carefully considered, the ACCC must exercise its discretion to direct resources to the investigation and resolution of matters that provide the greatest overall benefit for consumers and businesses. The ACCC’s Compliance and Enforcement policy describes in more detail how this discretion is exercised. This policy, which is available on the ACCC’s website [www.accc.gov.au], lists a number of factors that are weighed including whether conduct raises national or international issues, involves significant consumer detriment or a blatant disregard of the law. The Act also allows an affected party to take their own legal action for a breach of the Act. You may wish to seek legal advice on the possibility of taking your own action in this circumstance. Thank you for contacting the ACCC with your concerns. I trust this information is of use. Yours sincerely, Katy ACCC Infocentre Ph: 1300 302 502