Notes benefits of scale (big not always bad)

Endorses international best practice principles of competition policy set out in BCA submission and endorses definition of competition policy in Issues paper

Principle of competition law 'should be to promote and protect competitive processes and behaviour for the benefit of consumers' (p 7))

Should remove remaining import protection/tariffs and remove GST exemption for imported goods valued at less than $1,000

Remove pharmaceutical medicines package size limits for supermarkets

Trading hours - remove restrictions on retail trading hours

Qld restrictive liquor licencing laws (remove requirement to own hotel licence)

National standardisation of licencing of tradespeople and certification of occupations needed

Government participation (needs to be determined on case by case basis)

Competition laws generally working well

Market definition
Endorses BCA recommendations

Cartels and boycotts
Support existing prohibitions

Price signalling
If to remain should apply to whole economy

Misuse of Market Power: effects test
Oppose effects test (provides neat history of effects test on page 13). Concern includes:

'A business that competes hard on price, to the benefit of consumers, can damage or eliminate a rival, or make it uncommercial for a potential rival to enter a market. Since the competitively behaving business cannot know in advance what effect its competitive behaviour might have on an actual rival or on a potential rival that is not even in the market at the time, it could breach the law by behaving competitively.' [p 14 - other examples also given]

Misuse of Market Power: Birdsville (predatory pricing)
Birdsville amendment should be repealed.

Misuse of Market Power: Reverse onus
Refers to MGA proposal - reverse onus would effectively constitute a market cap.

Forced divestiture (ss 46 and 50)
Notes divestiture available for contravention of s 50; this is appropriate 'because there is a clear connection
between the breach and the remedy' (p 15)

In relation to s 46 'it would be impossible to meaningfully connect the relevant conduct with any particular assets to divest. Any divestiture remedy would be arbitrary and would very likely cause disproportionate harm to the business by splitting it along arbitrary lines' (p 15). Notes Griffiths and Cooney reports both recommended against divestiture and Hilmer Report noted it would be arbitrary and ineffective in some cases (thought it only suitable in merger cases) and Dawson Report agreed it was inappropriate and arbitrary. Note that jurisdictions that have general divestiture powers rarely use them.

Price discrimination
Any such restrictions would be detrimental to consumers

Mergers: Creeping acquisitions and market caps
Would protect businesses at the expense of consumers and ' disadvantage landowners and existing storeowners wishing to sell their businesses, limiting the number of eligible bidders ...' (page 17)

Unfair terms (caution against extending to B2B unless it is clear what is considered fair/unfair)

Code framework working satisfactorily; support enforceability of voluntary and mandatory codes

Favours consultative approach. Concerned ACCC 'not always sufficiently discriminating in the exercise of its information-gathering powers' - eg, failing to target s 155 notices with precision and requiring third parties to provide significant documentation (p 12)

Suggest annual report of the Productivity Commission on 'competition policy policy, its implementation and issues such as institutional structures, compliance costs and the impact of changing technologies and associated market structures on competition' which could also nominate priorities for reform

COAG - reform payments integral to success of COAG implementing NCP