The Baxter case study presented in this chapter discussed how Baxter Healthcare was prosecuted under Australian competition laws for bundling two types of pharmaceutical products. But many products come as bundles. Car bodies and engines are sold as a bundle.

Mobile phones and calling plans are often sold as a package. Even shoes and shoe laces are usually sold together. Think of reasons why bundling might be good for consumers and business.

Under what circumstances could bundling create competition concerns? In particular, why might government be concerned if the firm that bundles the products has a monopoly in part of the bundle?