Australia’s competition regulator has called for a sweeping overhaul of merger laws, stating they are anti-competitive and hurt consumers, reported Bloomberg.
The laws strongly favor companies seeking mergers or takeovers to be waved through, making it difficult for the regulator to challenge anticompetitive deals through the courts, the Australian Broadcasting Corp. quoted Australian Competition and Consumer Commission Chairman Rod Sims as saying at an event.
The nation’s merger and acquisition laws are “out of step” internationally and benefit large companies, while being detrimental to consumers, small businesses and the economy, Sims was cited as saying.
The regulator’s lack of success in merger cases had resulted in some “problematic acquisitions,” such as Vodafone Group’s merger with TPG Telecom, which removed the entry of a fourth mobile phone operator, the report stated. Another example was AGL Energy Ltd.’s acquisition of Macquarie Generation assets, which led to higher power prices, Sims said, according to the report.
Many markets in Australia are dominated by a small number of providers including banking, supermarkets, mobile telecommunications, internet services, and domestic air travel among others, Sims said.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI