Government signs off on new ‘misuse of market power’ rules

Published on the 18/08/2017 | Written by Newsdesk


Misuse of market power

Significant amendments designed to strengthen competition law legislated…

According to the government, new ‘misuse of market power’ rules will provide “greater protections for small businesses and more choice for consumers by boosting innovation and opening new markets”.

The amendments implement recommendations from the Harper Competition Policy Review (the first comprehensive review of Australia’s competition laws and policy in over 20 years) to strengthen section 46 of the Competition and Consumer Act 2010, also known as the ‘misuse of market power’ provision.

The Harper Review found the misuse of market power law was not reliably enforceable and did not effectively target and deter anti-competitive conduct. The reforms passed this week are designed to ensure Australia’s competition laws are “fit for purpose and support competition in a dynamic economy”, preventing firms with substantial market power “engaging in conduct that harms competition in Australian markets”.

“This is particularly important for Australia’s 3.2 million small businesses which make up more than 97 percent of all businesses,” said a release issued by treasurer Scott Morrison this week.

“The reformed section 46 will prohibit a corporation from engaging in conduct with the purpose, effect or likely effect of substantially lessening competition in a market in which it directly or indirectly participates.”

The laws have been passed despite objections from both the Business Council of Australia and the Labor Party.

“Typically, the Labor party was left almost alone in opposing these important reforms, preferring to back big businesses and big unions over the interests of consumers and small businesses,” chided the statement.

“The amendments have been subject to extensive public consultation following the release of the Government’s response the Harper Review, an exposure draft in 2016, and a Senate inquiry. Concerns raised by stakeholders have been addressed in the legislation.”

Further amendments to the Competition and Consumer Act 2010 to implement a range of reforms recommended by the Harper Review are currently before the House of Representatives.

Both section 46 and the additional amendments will commence “as soon as possible”, once the additional amendments have passed the Parliament.

Post a comment or question...

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

MORE NEWS:

Processing...
Thank you! Your subscription has been confirmed. You'll hear from us soon.
Follow iStart to keep up to date with the latest news and views...
ErrorHere