ACCC defends proposed change to merger rules
ACCC Chair, Rod Sims, has defended the ACCC’s proposal to amend the merger provision in the Competition and Consumer Act.
The proposal is the first of a series of recommendations to come out of the ACCC’s Digital Platforms Inquiry. It recommends that s 50(3) of the Act be amended to incorporate the following additional factors when assessing whether a merger may have the effect of substantially lessening competition:
(j) the likelihood that the acquisition would result in the removal from the market of a potential competitor;
(k) the nature and significance of assets, including data and technology, being acquired directly or through the body corporate.
The second recommendation is also directed to mergers, recommending that large digital platforms agree to a notification protocol; there is currently no mandatory merger notification requirement in the Competition and Consumer Act.
In a submission to Treasury the Business Council of Australia criticised the recommendation,arguing there is not a ‘strong’ case’ for change.
Sims responded that the dominant view is that the ACCC does not block enough mergers and that the ‘right’ answer depends on ‘a philosophical position’ with some naturally preferring more mergers were blocked and others wishing for the opposite.
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