Merger laws: ACCC hasn’t made the case for shake-up of the merger regime

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 90%

Business News News

Business Business Latest News,Business Business Headlines

The competition watchdog already has strong powers that it is using effectively to block and reshape deals. We are not convinced there is a crisis that demands a different regime.

As competition lawyers, we’re not known for forecasting the weather. But we suggest Australian deal makers invest in raincoats because dark clouds are gathering.in Melbourne show the regulator is prepared to play hard, taking a muscular approach to block mergers, especially in markets it believes are concentrated.

Given the lack of consensus that there is a problem to be solved, it should surprise no one that the ACCC’s proposed solution is also hotly contested. How would such a precautionary principle apply in practice to Australian merger law? The ACCC would apply it by reversing the current legal onus of the statutory test and by making the decision more discretionary.

Finally, there is the question of who marks the ACCC’s homework. It is true that the ACCC is blessed with a formidable set of legal minds. We’ve worked closely with them as colleagues in private practice over the years. But the quality of individual commissioners does not reduce the need for proper regulatory design.

On the whole, the ACCC oversees a successful and effective merger regime. Businesses and advisers understand the process and respect it. Over the past two decades, only a handful of mergers have had to be resolved by the courts or the tribunal.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Live updates: Senate inquiry releases report into Qatar Airways decision, oil prices higher after Hamas attack, ASX higher on energy stocksThe Senate committee examining a decision by the federal government to block additional Qatar Airways flights says it needs to be reviewed immediately, while the ACCC's monitoring of domestic airlines needs to be reinstated. Follow live.
Source: abcnews - 🏆 5. / 83 Read more »