Competition Law Reforms continue in Australia

Competition law in Australia continues to be the subject of reform.

The Competition and Consumer Amendment (Competition Policy Review) Bill 2017 was introduced into the House of Representatives on 30 March 2017 and was subsequently passed and is currently before the Senate.  The key elements are (a) amendments to definitions, particularly the competition definition (b) amendments to cartel provisions - price signalling, concerted practice and exclusionary provisions (c) increased penalties for secondary boycotts and (d) the removal of the per se prohibition on third line forcing (i.e. purpose or effect of substantial lessening of competition will be required in the future).

Meanwhile, the Competition and Consumer Amendment (Misuse of Market Power) Bill 2016 was passed in the House of Representatives on 28 March 2017 and is being debated in the Senate.  The Bill involves the repeal of the current s 46 and its replacement with a prohibition of wider application.  In particular, an “effects” test – i.e. conduct which has, or is likely to have, the effect of substantially lessening competition – is to be introduced and the “take advantage” aspect of s 46 will also be removed.