Australia's largest gymnasium company (‘Fitter First’) (which has a market share of 80 per cent) has decided to expand its business line to include yoga studios, which are operated on separate premises from the gymnasiums to provide a more calming experience for clients. Fitter First has just launched its first yoga studio (‘Yoga First’) in Bondi, just 50 metres from your studio. According to its advertising flyers, Fitter First is offering annual memberships, which include unlimited classes each week for the first year of operation, for just $2 per month ($24 per year). You also suspect that it has engaged in typo squatting, to direct internet traffic from your website to theirs. You predict that these factors will cause you to go out of business within six (6) months if you don’t do something to stop this. Yesterday you organised a meeting of other locally owned businesses (including ten competitor yoga studios) to discuss how to save your respective businesses from this new competitor. At the meeting, the other yoga studio owners agreed that Fitter First’s new pricing policy will cause them to go out of business within six (6) months too. With the support of the owners of surrounding small coffee shops, you all agreed that the coffee shops will not serve coffee to customers of the Fitter First gymnasium, and that you will all ban from your own yoga studios anyone who has been a member of Fitter First during the previous 2 years. (a) Has Fitter First has done anything illegal? Give reasons. (b) Have you or the other local business owners have done anything illegal? Give reasons.
1. Australia's largest gymnasium company (‘Fitter First’) (which has a market share of 80 per cent) has decided to expand its business line to include yoga studios, which are operated on separate premises from the gymnasiums to provide a more calming experience for clients. Fitter First has just launched its first yoga studio (‘Yoga First’) in Bondi, just 50 metres from your studio. According to its advertising flyers, Fitter First is offering annual memberships, which include unlimited classes each week for the first year of operation, for just $2 per month ($24 per year). You also suspect that it has engaged in typo squatting, to direct internet traffic from your website to theirs. You predict that these factors will cause you to go out of business within six (6) months if you don’t do something to stop this.
Yesterday you organised a meeting of other locally owned businesses (including ten competitor yoga studios) to discuss how to save your respective businesses from this new competitor. At the meeting, the other yoga studio owners agreed that Fitter First’s new pricing policy will cause them to go out of business within six (6) months too. With the support of the owners of surrounding small coffee shops, you all agreed that the coffee shops will not serve coffee to customers of the Fitter First gymnasium, and that you will all ban from your own yoga studios anyone who has been a member of Fitter First during the previous 2 years.
(a) Has Fitter First has done anything illegal? Give reasons.
(b) Have you or the other local business owners have done anything illegal? Give reasons.
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