March 16, 2016
Legislation to fix competition policy in Australia and better protect small business and consumers will be brought forward by the Federal Government.
Federal Member for Gippsland Darren Chester said the Government would implement the Harper Review’s recommendation to prevent large corporations from any conduct which has the purpose or effect of lessening competition.
The legislation will be a win for The Nationals, who have advocated on behalf of regional businesses to address anti-competitive behaviour and assist consumers to receive the best quality products and services at the lowest price.
Mr Chester said the Harper Review into competition policy had found Australia’s current misuse of market power provision was not reliably enforceable and permitted anti-competitive conduct.
“After extensive consultation with business and industry groups, the Government has decided to adopt the changes recommended by the Harper Review in full,” Mr Chester said.
“A new provision will be added to the Competition and Consumer Act to prevent firms with substantial market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition.”
Mr Chester said the Federal Government’s amendment of Section 46 of the Act to deal with unilateral anti-competitive conduct was an important step to support innovation and boost economic growth and jobs.
The focus of the new legislation will remain only on those firms that have “substantial market power”.
Mr Chester said protecting the competitive process was “pro-competition” and allowed everyone to have a go.
The Government will consult on Exposure Draft legislation before introducing it to Parliament later this year.