Organic falafel sold in Queensland

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Reference no: EM133936018

Question

Idoru sells 90 per cent of all organic falafel sold in Queensland. Idoru also sells 40 per cent of the organic falafel in New South Wales and 30 per cent of the organic falafel in Victoria. A competing supplier, Count Zero Ltd, holds 30 per cent of the New South Wales market and 15 per cent of the Victoria market. Idoru proposes to merge with Count Zero.

1. What problems if any, do you see with this merger?

2. Do you think that this merger would be legal under the CCA?

3. What if, pursuant to CCA s 87B, Idoru offers a written undertaking to the ACCC to sell its current New South Wales operations to another entity?

4. What if Idoru subsequently breached this undertaking?

Reference no: EM133936018

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