Industry Rallies to Amend Legislation

17 businesses, including the Australian Hotels Association, Australian Retailers Association, Master Grocers Association and the National Farmers’ Federation have rallied together to make an amendment to the Competition and Consumer Act.

Representing more than 500,000 businesses and three million employees, the 17 are hoping to see a change to Section 46 of the Act that they say, will make for healthier competition in Australia.

Specifically, the group are wanting section 46 to change to read: “A corporation that has a substantial degree of power in a market shall not engage in conduct that has the purpose, effect or likely effect of substantially lessening competition in that or any other market.”

The group says the amendment to the act would mean more competition and a better deal for Australian consumers.
“The proposed change to section 46 would move Australian law closer to international best practice, which prohibits unilateral conduct by a dominant firm that has a harmful effect on competition. Australia’s current approach, focusing solely on the purpose of the dominant firm to establish a contravention of unilateral conduct prohibitions, is rare”, it was said in a statement released by the group.

“The proposed legislative change would represent a serious commitment to small and medium business, following the small business initiatives in the May Budget.”

Behind their advocacy for change, is the Harper Review’s recommendation for the introduction of an “effects” text, which would allow the consumer watchdog, the ACCC, to deter anti-competitive practices.

“We agree with the Harper Review and other competition experts, including Professor, Allan Fels, that change is needed to make our competition laws fit for purpose”, the group says.

“There have been exaggerated claims about the impact on price and a “chilling” effect on competition. However the Harper Review addressed these questions. Australia’s leading voice for consumers, CHOICE, agrees that this change is in the best interests of consumers.”

The 17 have now submitted their letter to all Liberal and National Members of Parliament and are waiting on a response.

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