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Australia: Concern over possible split in ACCC structure

By  |  April 1, 2015

Competition watchdog, Rod Sims, welcomed the review’s call to amend the competition law to stop big companies forcing smaller rivals out of business.

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    “At the moment, the misuse of market power is not effective,” Mr Sims said.

    There are also some recommendations in here which are quite controversial and we think need more thought.

    “It’s not effective because the courts have said that it’s okay for a big firm with market power to do whatever it likes, providing what it’s doing is something a smaller firm can do.”

    “Given these real benefits to consumers, the case for the inclusion of an effects test is not met,” ANRA’s chief executive Ann McPhee said in a statement.

    But Mr Sims is concerned about the panel’s recommendation to give the Australian Competition and Consumer Commission (ACCC) power over infrastructure access and pricing to a new regulator.

    “They’re arguing that the ACCC should be broken up,” he said.

    “My concern with that is, if you break up the ACCC into its competition and consumer bit on the one side and its infrastructure regulation on the other, then a whole lot of firms will have to deal with two regulators, not one.”

     

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