On May 27, 1998, the Australian Competition and Consumer Commission ('ACCC') determined that certain conduct by Telstra in the supply of Internet services constituted a contravention of the Competition Rule pursuant to s151AJ(2) of the Trade Practices Act, 1974 ('the Act'). A Competition Notice was consequently issued, and was to come into force on June 5, 1998. 1 This was the first such Notice issued. The Notice specified the conduct allegedly in contravention of the Competition Rule as follows.......
This paper examines the background to and effects of the Competition Notice. The structure of the paper is as follows. First, the legislative background is set out (section B). This is followed by a brief introduction to the Internet (section C) and to interconnection arrangements in the Internet (section D). Section E examines the relevant markets and whether Telstra had power in those markets. Section F considers whether the conduct involved taking advantage of market power, section G whether it had an anti-competitive effect and section H whether the remedies promoted or lessened competition. Section I concludes.