The competition watchdog has warned the State Government it must toughen up oversight of prices charged at Port Hedland’s Utah Point facility if it wants to privatise the bulk export terminal.
The Australian Competition and Consumer Commission said light-handed regulation risked a buyer ramping up prices at the expense of Pilbara mid-tier miners.
In a letter to the Legislative Council committee examining the sale of Utah Point, the ACCC described pricing at the terminal as a “key term of access” and said the legislation should include terms allowing its users to challenge price rises imposed by a new private owner.
“Without sufficient regulatory arrangements being put in place during the privatisation process, the privatised owner will have the incentive and ability to use its market power to raise prices above efficient levels and/or reduce service quality,” the letter said.
The letter supports the arguments of mid-tier miners that use the facility, including Atlas Iron, Mineral Resources and Consolidated Minerals.
They have opposed privatisation, arguing charges at the terminal are already too high. They fear any price hikes could put their businesses at risk, particularly if iron ore prices again begin to fall.
The committee is due to deliver its report on the legislation enabling the proposed privatisation on Thursday.
Full Content: Yahoo News
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK’s CMA Investigates Education Software Company for Market Abuse
May 14, 2024 by
CPI
Schumer Urges FTC Caution on Chevron’s $53B Hess Deal Over Gas Price Fears
May 14, 2024 by
CPI
Amazon Urges US Judge to Block FTC Probe into Data Preservation
May 14, 2024 by
CPI
Colorado Makes History: First State to Enact Comprehensive AI Legislation
May 14, 2024 by
CPI
Class Action Settlement Reached in Cheerleading Monopoly
May 14, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI