Australia's Response to Oligopolies: Merger Reforms to Boost Competition

Australia has long been a land of oligopolies – industries dominated by a few companies. From banking, to airlines, to supermarkets, to insurers, you can often count the number of major players on one hand. Nothing new there, you say? Well, this week the government unveiled a response of sorts – but it’s not the populist answer of breaking up the corporate giants.that should make it easier for the competition watchdog to block anticompetitive mergers.

Previous work from Treasury has also shown it’s overwhelmingly bigger companies who are making the acquisitions. Says Assistant Minister for Competition Andrew Leigh: “Half of all mergers involve a firm that is in the biggest 1 per cent of firms. So there are a significant number of mergers which don’t involve a couple of minnows getting together to take on the whale, but involve the whale snapping up the minnow.

That’s actually a significant development. Under the current laws, if the ACCC doesn’t like a deal it has to make its case in court, putting the onus on the regulator to prove that the merger that hasn’t happened yet will result in a substantial lessening of competition. The watchdog has had some well-known losses in court, where it’s struggled to counter evidence from executives who swear competition won’t be harmed by the deal they’re planning.

A general suspicion there’s not enough competition sits behind much of the recent political backlash against big business and the accusations of gouging.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Merger law: Jim Chalmers reveals changes to merger regimeThe ACCC will be able to block serial acquisitions and those that entrench the market power of big players, but Jim Chalmers rejected a “presumptive ban” on mergers.
La source: FinancialReview - 🏆 2. / 90 Lire la suite »

Overhaul of Australia's Merger Regime to Impact Corporate Giants and Smaller CompaniesExperts suggest that the proposed overhaul of Australia's merger regime will make it more difficult for deals to proceed in markets dominated by a few corporate giants. However, it could also be costly for smaller companies. The reforms include notifying the country's competition watchdog of planned mergers and removing the Federal Court from the review process. The Treasurer, ACCC chair, and assistant minister have announced the proposed reforms, stating that they would strengthen the economy and improve living standards. Gilbert + Tobin partner Simon Muys highlights that the reforms would grant more power to the Australian Competition and Consumer Commission, which has already been blocking numerous deals.
La source: brisbanetimes - 🏆 13. / 67 Lire la suite »

Biggest overhaul in 50 years of Australia’s merger lawsSarah Ferguson presents Australia's premier daily current affairs program, delivering agenda-setting public affairs journalism and interviews that hold the powerful to account. Plus political analysis from Laura Tingle.
La source: abc730 - 🏆 14. / 63 Lire la suite »

Australia merger laws: Deal makers trumped by economists in M&A shake-upLawyers and bankers will lose from the merger overhaul that attempts to tackle economic concerns that industry concentration has led to higher prices and fewer start-ups.
La source: FinancialReview - 🏆 2. / 90 Lire la suite »

Australia merger laws: Jim Chalmers’ reforms threaten to ‘kill off start-up sector’, tech leaders warnTech leaders have warned that proposed merger laws will kill deals before they close, starving the sector of the capital it needs to continue to grow.
La source: FinancialReview - 🏆 2. / 90 Lire la suite »