Sims: Competition key to driving economic activity

Speaking in a webcast with the AFR, ACCC Chair, Rod Sims, said that the ACCC was working with businesses to authorise cooperation to support the community during the current crisis, but that competition has a critical role to play post COVID-19.

In particular, Sims said:

“At a time of crisis such as in war or with a pandemic, where there is a common enemy to fight for the nation’s survival, and so a sense of national purpose, co-ordination is both efficient and carries little or no downside,”

“But in normal times, without a common enemy, co-ordination leads to complacency, inefficiency and higher prices.”

“It is important that these short-term measures do not give rise to long-term structural damage to competition, market concentration or long-term arrangements that make it more difficult for businesses to enter and compete into the future,” Mr Sims said.

See ACCC, ‘Competition will be key to driving economic recovery’ (30 March 2020)