by Treasurer Jim Chalmers – herald a significant shake-up for competition policy in Australia. Once implemented, they will deliver direct benefit to consumers, small business, farmers and even big business itself .
The introduction of compulsory pre-notification of big mergers is a no-brainer. Nearly every other OECD country has this. Australia’s an outlier. The combination of ACCC decisions, compulsory notification, and some other proposed procedural reforms will lead to better and quicker processes. The need for this key change has been magnified by the fact that these days, the ACCC – competent and formidable litigator that it is – often faces an army of corporate lawyers and silks, economists, consultants, business advisors, and well-rehearsed business witnesses in court. This has contributed to a recent string of losses in merger cases.The new law also will help curb creeping acquisitions.
The government does not propose to introduce divestiture powers to compel big businesses to be broken up when a court finds that they have acted illegally and concludes this is the best remedy. But for the record, the USA, the home of free markets, has used divestiture power to great effect.