Define: Complementary Good

A complementary good is a product or service that is typically used together with another product or service to enhance its value or functionality. For example, a smartphone and a mobile data plan are complementary goods as they are often used together to access the internet on the go.

Complementary goods are not always necessary for the functioning of a product or service, but they can significantly enhance its value or utility. While some products can be used independently, their usage may be more efficient or effective when paired with complementary goods.

Yes, companies often bundle complementary goods with their main product or service to provide a more comprehensive offering to consumers. This bundling strategy can help increase sales and customer satisfaction.

In most cases, companies are not legally required to provide complementary goods with their main product or service. However, if a company has made specific promises or guarantees regarding the provision of complementary goods, they may be legally obligated to fulfil those promises.

Yes, if a company falsely advertises the availability or quality of complementary goods, they may face legal consequences for deceptive advertising practices. Consumers have the right to accurate and truthful information when making purchasing decisions.

If a company engages in anti-competitive practices to monopolise the market for complementary goods, they may face legal challenges under antitrust laws. Monopolistic behaviour can harm competition and limit consumer choice, which is generally prohibited by law.

Yes, a company can restrict the use of complementary goods through licencing agreements. These agreements may impose certain conditions or limitations on the use, distribution, or modification of the complementary goods, as determined by the company.

Tying arrangements, where a company requires customers to purchase one product or service in order to obtain another, can raise antitrust concerns. If a company uses tying arrangements to unfairly restrict competition or harm consumer welfare, they may face legal challenges.

If a company provides complementary goods that are defective or pose a risk to consumers, they may be held liable for any damages caused by the use of those goods. Companies have a duty to ensure the safety and quality of the products they offer, including complementary goods.