THE competition watchdog will launch an investigation into clothing importers who are reaching agreements with overseas suppliers to stop selling their products to Australians on websites or instructing them to lift their web prices.

Australian Competition and Consumer Commission chairman Rod Sims has acknowledged that anti-competitive practices revealed by The Age last week could breach competition legislation.

Acts of lessening competition or controlling prices represent a breach competition laws. Credit:Phil Carrick

He said an investigation would be launched, and companies found breaking the law would be prosecuted. ''We are extremely committed to having a close look at this,'' he said.

''Making sure Australian consumers benefit from the revolution that we've got in the online world is a top priority … We will therefore use the [Competition and Consumer] act to its fullest.''