Fundamental changes to the economy triggered by decarbonisation and digitisation make it ever more “critical” for the Australian Competition and Consumer Commission tofor urgent law reform, said the ACCC needed mandatory powers to ensure that big mergers and acquisitions, wrought by these kinds of megatrends, did not reduce competition or stifle innovation.
These transactions would be suspended without ACCC clearance and the watchdog would get a “call in” power to scrutinise transactions that did not meet the notification threshold but still raised competition concerns.The test of whether a deal substantially lessens competition would also be adapted to include “entrenching, materially increasing or materially extending a position of substantial market power”, similar to the European Union’s merger test.
“Because they are going to review it, they’re going to consult, it will take some time when they kick it off, and we just really do think that’s it an area that’s urgent ... Australia is one of very few OECD countries that does not have a mandatory regime.” “M&A is also important for the efficient functioning of the economy ... a poorly designed merger regime could prevent, or delay, pro-competitive or benign mergers to the detriment of Australians.”
“ underscores the importance the ACCC places on rapidly advancing renewable energy generation and reducing greenhouse gas emissions.”