Treasurer Jim Chalmers to boost ACCC’s merger powers with legislative amendments
An overhaul of the ACCC’s merger powers, including the ability to block deals without having to go to court, will move a step closer on Wednesday.
Federal Treasurer Jim Chalmers will boost the competition watchdog’s merger powers, with legislative amendments due to be tabled in federal parliament on Wednesday.
The proposed amendments were released for comment in July, with a separate release for merger disclosure thresholds last month.
The changes come as the federal government ramps up pressure on the big supermarkets over allegedly excessive price increases, as part of its campaign to relieve cost of living pressures.
The government has also sought comment on proposed national competition reform, which former Productivity Commission chief Peter Harris argues is more important than merger changes, given its broader economic coverage.
The Australian Competition & Consumer Commission argues good competition policy requires both strong merger laws and government policy.
The government has said little about the national competition plans, but it has confidentially sought guidance from the Productivity Commission on which reforms will have the biggest economic impact.
The merger amendments include for the first time mandatory notification of mergers where the proposed combination has turnover greater than $200m or the acquirer has more than $500m in Australian turnover. This covers big multinationals including technology platforms buying smaller Australian companies.
The mergers will not be able to proceed until the ACCC clears the deal, unlike present laws which require the ACCC to take the matter to court to stop a deal.
This gives the ACCC more power than the US Department of Justice, which must seek court approval to block a deal.
Appeals to the court will only be allowed on merit grounds, whereas today merger parties can go directly to court to get a deal ticked.
The changes will allow the ACCC to block a deal if it “reasonably suspects” it may lessen competition, whereas now the courts require “a real chance” the merger will lessen competition.
The changes also allow the ACCC to block deals that “entrench” market power, which stops big companies like supermarkets buying smaller stores which mean nothing on their own but in combination boost market power.
The new amendments will also set time limits on the ACCC in making decisions.
The ACCC can take into account national interest factors.
The amendments come just over a week before Federal Court judge Michael O’Bryan is due hold a hearing to set the timetable for the ACCC case against Coles and Woolworths for allegedly falsely claiming that products were on special.
Originally published as Treasurer Jim Chalmers to boost ACCC’s merger powers with legislative amendments
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