Australia enacted a law concerning the National Competition of 1906, which was inspired by the “Sherman of Anti Trust Act of 1890”. It is called the “Australian Preservation Act of 1906”. It states some limitations to the trade and commerce such as prohibition of “monopolizations” and “combinations”. Monopolizations and combinations are connected of taking control of a certain industry. Therefore, protection was given to those Australian industries once destroyed because of unfair competition in order them to rebuild. However during 1910, a constitutional power greatly reduced the scope of this act. It turns out to be that the act is not applied until the mid-1960. Although the federal government tried several times to find some ways in order to solve the problems regarding the limitation of the scope, they are still unsuccessful (Peterson Institute for International Economics 2007)
During the 1970’s economic reforms have reduced tariff protections and increased import quotas, removing many barriers to foreign competition. At the same time new Trade Practices Act was passed that doesn’t allow any anticompetitive product. There are some main changes of the act in the year 1977. Tougher provisions were added such as tightened anti-monopolization policies, price-fixing agreements and exclusive dealing provisions were widened to deal with the restrictions required by seller or buyers. (Peterson Institute for International Economics 2007).
During the 1980’s, Australia became more aware about the importance of competition. Because of competition, many companies became more dynamic, flexible and efficient. The policies regarding prohibition of anti-competition still remained as the basic approach but there are some changes occu ...