Australia: Debate sparks over planned ACCC amendments

As the Australian Competition and Consumer Commission considers whether to amend legal provisions regarding the misuse of market power, debate has emerged in the country over how the ACCC will impact the market with such changes.

Section 46 of the Competition and Consumer Act 2010 is now under question by the ACCC. According to reports, the watchdog is considering implementing a competition test to establish whether a company has abused its market dominance.

The ACCC is considering an amendment that states “A corporation has a substantial degree of market power in a market shall not engage in conduct that has the purpose or has, or is likely to have, the effect of substantially lessening competition in that or any other market.” has a substantial degree of market power in a market shall not engage in conduct that has the purpose or has, or is likely to have, the effect of substantially lessening competition in that or any other market.”

While some experts say the amendments would protect consumers and foster competition, others suggest that the rule changes would only protect competitors and not the overall competitive process.

Proponents of the amendments say that section 46 is inconsistently implemented, as it focuses on the conduct with the purpose of harming rivals, rather than focusing on overall competition in the market. That inconsistency, some say, means that an amendment is necessary.

Others, however, argue that that amendment would unfairly force any big business of engaging I conduct that would lessen competition.

Full content: Australian Financial Review

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