25 November 2011

Parliament Passes Laws to Strengthen Protections Against Anti-Competitive Mergers & Unconscionable Conduct

Amendments clarifying and strengthening provisions dealing with unconscionable conduct and creeping acquisitions were passed by the Parliament today, said Parliamentary Secretary to the Treasurer, David Bradbury.

"The Competition and Consumer Legislation Amendment Bill 2011 strengthens and streamlines our competition and consumer framework, clarifying protections for consumers and businesses," said Mr Bradbury.

"The amendments to the merger provisions that deal with creeping acquisitions make it clear that a court or the Australian Competition and Consumer Commission (ACCC) can consider the competitive effects of a merger or acquisition on multiple markets in the one investigation. This amendment will ensure that a court or the ACCC can look beyond the primary market in which the merger or acquisition would occur.

"Importantly, these measures ensure that a court or the ACCC can examine a merger or acquisition in any market, regardless of its size or geography.

"The amendments also clarify the scope of behaviour that could be captured by unconscionable conduct provisions by inserting a list of interpretative principles.

"This will provide consumers, business, regulators and the courts with greater certainty about what constitutes 'unconscionable conduct'.

"The amendments also bring consistency between the protections afforded to businesses and consumers in the Australian Securities and Investments Commission (ASIC) Act and the Australian Consumer Law.

"These amendments continue the reforms that the Labor Government has made to the competition and consumer law framework since coming to office.

"The Gillard Government is committed to ensuring that our laws protect consumers, encourage competition and prohibit anti-competitive behaviour."

25 November 2011