An excess of access: An examination of Part IIIA of the Australian Trade Practices Act

Henry Ergas

Agenda - A Journal of Policy Analysis and Reform, 2009, vol. 16, issue 4, 37-66

Abstract: Part IIIA of the Australian Trade Practices Act defines circumstances in which a facility owner may be required to provide a third party with use of its facility. This paper examines what Part IIIA might be doing from an economic perspective and criticises ‘monopoly leveraging’ arguments for third-party access. It argues that the transactions costs of access are potentially significant, and can exceed any efficiency gains third-party access permits. These contentions are corroborated by reference to the long-running dispute between the Fortescue Metals Group and BHP Billiton Iron Ore over access to rail track in the Pilbara region of Western Australia.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:acb:agenda:v:16:y:2009:i:4:p:37-66

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