Policy in the Pub: Competition Policy Review

Synopsis 

The Competition Policy Review, otherwise known as the Harper Inquiry, published its Final Report in March 2015. The Report contained 56 recommendations for change. Three will be reviewed. First, like its predecessor, the Hilmer Inquiry, it recommended expanding areas within government subject to competition, controversially into Human Services. Will this really improve service delivery? Second, perhaps the most publicised recommendation has been in relation to s.46 of the Competition and Consumer Act 2010, the provision that prohibits firms with substantial market power from taking advantage of that power to engage in conduct that has an anti-competitive purpose. The term ‘take advantage’ is to be deleted, while the test is expanded from ‘purpose’ to’ purpose, effect or likely effect’. Is this merely ‘tweaking’ the current provision or does it have significance? Third, tacit collusion has to date escaped the competition net, but the Inquiry recommends inserting the European provision prohibiting ‘concerted practices’, a very significant widening of the net.

About the speaker

Rhonda Smith is a Senior Lecturer in the Economics Department at the University of Melbourne, and also teaches in the Masters program in the Law School. She is a former ACCC commissioner and is presently a member of the Australian Copyright Tribunal and until recently was a lay member of the High Court of New Zealand. She provides economic advice in relation to competition issues and has acted as an expert witness in a number of competition cases.