Australia: ACCC’s Rod Sims warns of ‘gaps’ in cartel laws

Australia is at risk of corporate cartels because of gaps in the law that could stop companies being prosecuted, Australian Competition and Consumer Commission chairman Rod Sims says.

Mr Sims backed the recommendations of the Harper review into competition to crack down on cartel-like behaviour by companies, saying legal loopholes allowed “concerted practices” involving tacit collusion between competitors that fell short of an agreement.

Recent legal action in the Libor and Euribor case, taken by the European Commission against a large number of international banks, would not be possible in Australia, he said.

“In most advanced country competition law systems overseas, concerted practices are prohibited,” Mr Sims will tell a Committee for the Economic Development of Australia lunch in Brisbane on Thursday.

The ACCC chairman also criticised supermarket chains Coles and Woolworths for acting like the Harper review’s recommendations on section 46 of the Trade Practices Act were aimed at them.

“They are instead aimed at making an important law of general application workable. Any change will affect all sectors to the same extent,” he said.

Full Content: Financial Review

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