Frontier Economics (Australia) Chairman Philip Williams presented at the 12th Annual University of South Australia Competition and Consumer Workshop, held 10-11 October 2014.
Philip presented a session on the proposed changes to Section 46 of the Competition and Consumer Act 2010, put forward in the Draft Report of the Competition Policy Review. This proposes that s 46 be re-framed to prohibit a corporation that has a substantial degree of power in a market from engaging in conduct if the proposed conduct has the purpose, or would have or be likely to have the effect, of substantially lessening competition in that or any other market.
However, it proposes that this primary prohibition should not apply if the conduct in question:
- would be a rational business decision or strategy by a corporation that did not have a substantial degree of power in the market; and
- would have the effect or likely effect of the conduct of benefiting the long-term interests of consumers.
Philip’s paper examines both the proposed primary prohibition and the defence in the light of the criteria adopted by the Review.
Frontier Economics regularly advises clients on a range of market power and other competition issues.
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