The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, today released a second discussion paper exploring options and calling for public comment on the best way forward to address the issue of creeping acquisitions.
"The government is committed to addressing concerns that the current regime has failed to apply scrutiny to the small scale acquisitions of corporations, that may have the effect of enhancing their already substantial power, to the detriment of consumers," Mr Bowen said.
"The release of this discussion paper reflects the Government's election commitment to implement sensible reform in relation to creeping acquisitions.
"The paper continues the consultation process that has been important in broadening the discussion and understanding around creeping acquisitions and should ultimately lead to a more effective and a balanced approach to the issue.
"We are determined to get the balance right between protecting consumers from dangerous anti-competitive acquisitions; and promoting efficient, organic growth for business."
This new discussion paper takes into consideration submissions and responses provided by stakeholders and interested parties to the first discussion paper released in September 2008 and subsequent consultation.
Creeping acquisitions refer to the acquisition of a number of individual assets or businesses over time that may collectively raise competition concerns, but when considered in isolation, are unlikely to be captured by the existing mergers and acquisitions test under section 50 of the Trade Practices Act.
Concerns about creeping acquisitions usually arise when a supplier with a substantial degree of market power acquires smaller competitors.
Copies of the discussion paper can be obtained from the Treasury website: www.treasury.gov.au
The closing date for submissions is June 12 2009. Submissions may be lodged electronically, by post or facsimile.
Unless otherwise indicated by respondents, submissions will appear on the Treasury website.
Attachment: Creeping Acquisitions - the Way Forward