The ACCC has welcomed the start of consultation by the Government on draft legislation for proposed reforms to Australia’s merger laws.
ACCC Chair Gina Cass-Gottlieb said the consultation is a key step in the process of developing the law that will ensure the reforms achieve their intended objectives.
“The reforms are important to achieve a simplified merger control framework that prevents harmful anti-competitive transactions and benefits Australian consumers and businesses of all sizes,” Ms Cass Gottlieb said.
“We welcome the opportunity the Government has provided for consultation with the wider community to ensure these reforms achieve their intended policy objectives.”
“Simplification is one of the key aims the Treasurer highlighted in designing the new merger reform. We are keen to ensure the new framework does not add complexity,” Ms Cass-Gottlieb said.
The Government has also advised that it will consult separately on the notification thresholds that will decide which mergers need to be notified to the ACCC.
“We note having the right thresholds for proposed mergers to be reviewed by the ACCC will be key to the effectiveness of the proposed new regime and its ability to achieve the Government’s policy objectives of preventing mergers that pose a risk to competition, consumers and the economy,” Ms Cass-Gottlieb said.
“The new merger regime needs to strike the right balance between ensuring that potentially anti-competitive mergers are scrutinised and where necessary prevented, while minimising regulatory burden for acquisitions that do not have anti-competitive effects.”
The ACCC has previously highlighted research by the Treasury’s competition taskforce that an estimated 1000-1500 mergers occur in Australia each year. However, only about 330 are notified to the ACCC under the existing voluntary merger regime.
“The new merger regime must address the deficiencies of current merger laws in allowing too many mergers to escape the competition regulator’s scrutiny,” Ms Cass-Gottlieb said.
Ms Cass-Gottlieb also today welcomed as an independent expert adviser to the ACCC and Treasury on the implementation of the government’s planned merger law reform.
“Ms Gomes da Silva’s expertise and independent views will provide valuable insights on important policy design and implementation issues relating to the reforms,” Ms Cass-Gottlieb said.
“Ms Gomes da Silva’s advice will assist Australia transition to the new merger control regime, in line with international best practice.”
“We look forward to drawing on Ms Gomes da Silva’s international perspective and her experiences, including during her leadership role at the UK competition regulator during a time of complex and significant change,” Ms Cass-Gottlieb said.
The ACCC will also renew and expand its Performance Consultative Committee to advise on the ACCC’s merger review functions as well as the broad range of the ACCC’s responsibilities.
“Our Performance Consultative Committee will consist of a range of stakeholders including consumer, business, and legal representatives. The Committee will provide feedback on ACCC initiatives and a forum for exchange of perspectives on key issues,” Ms Cass-Gottlieb said.
The membership of the refreshed ACCC Performance Consultative Committee will be announced in due course.
