Competition Policy Review
Issues Paper

(Harper Review 2014-2015)


 

Overview

The 59-page Issues Paper was released on 14 April 2014 and was open for submissions until 10 June 2014.

It contained the following sections:

  • Message from Panel

  • Introduction

  • Scope of the Review

  • Stakeholder Guide

  • Key questions for the review to consider

    • Competition Policy

    • Regulatory Impediments to competition

    • Government-provided goods and services and competitive neutrality

    • Potential reforms in other sectors

    • Competition laws

    • Administration of competition policy

Issues Paper Questions

 

The Issues Paper asks specific questions throughout and conveniently lists them all at the end of the paper.

1. Competition Policy

What should be the priorities for a competition policy reform agenda to ensure that efficient businesses, large or small, can compete effectively and drive growth in productivity and living standards?

2. Regulatory impediments to competition

Are there unwarranted regulatory impediments to competition in any sector in Australia that should be removed or altered?

Are there import restrictions, bans, tariffs or similar measures that, on balance, are adversely affecting Australians?

Is there a case to regulate international price discrimination? If so, how could it be regulated effectively while not limiting choice for consumers or introducing other adverse consequences?

Should any current restrictions on parallel importation be removed or altered in order to increase competition?

Are there regulations governing the sale of goods for health and safety or environmental reasons whose purpose could be achieved in a manner more conducive to competition?

Are there any restrictions on the export of goods from Australia which should be removed or altered in order to increase competition for exporters and producers, and choice for consumers?

Are there occupational-based restrictions, or restrictions on when and how services can be provided, that have an unduly adverse impact on competition? Can the objectives of these restrictions be achieved in a manner more conducive to competition?

Are there restrictions arising from IP laws that have an unduly adverse impact on competition? Can the objectives of these IP laws be achieved in a manner more conducive to competition?

Are there planning, zoning or other land development regulatory restrictions that exert an adverse impact on competition? Can the objectives of these restrictions be achieved in a manner more conducive to competition?

3. Government-provided goods and services and competitive neutrality

Are government-provided goods and services delivered in a manner conducive to competition, while meeting other policy objectives?

Is there a need for further competition-related reform in infrastructure sectors with a history of heavy government involvement (such as the water, energy and transport sectors)?

What are the competition policy reform priorities in sectors such as utilities, transport and telecommunications?

Does competitive neutrality policy function effectively, and does it apply to the appropriate government business activities?

Has the method of implementing competitive neutrality principles improved competition and productivity?

What are the disadvantages that private businesses face when competing with government business activities?

Could the mechanism for dealing with competitive neutrality complaints be improved?

4. Potential reforms in other sectors

Would there be a net public benefit in encouraging greater competition and choice in sectors with substantial government participation (including education, health and disability care and support)?

Can more competitive outcomes in the human services sector enhance both Australia’s productivity and the quality of human services delivered to Australian citizens?

Will more competition among providers serve the interests of consumers of health, education and other services?

What issues arise when government agencies, private businesses and not-for-profit organisations simultaneously seek to provide human services?

Can competition be increased in other markets currently served by government-operated providers?

Is current policy conducive to competition with government-operated services?

5. Competition laws

Are the current competition laws working effectively to promote competitive markets, given increasing globalisation, changing market and social structures, and technological change?

Given structural changes in the economy over time, do the definitions of ‘market’ in the CCA operate effectively, and do they work to further the objectives of the CCA?

Given structural changes in the economy over time, how should misuse of market power be dealt with under the CCA?

Are existing unfair and unconscionable conduct provisions working effectively to support small and medium sized business participation in markets?

Are there other measures that would support small and medium sized business participation in markets?

Should the recommendations in the Productivity Commission’s report on the National Access Regime be adopted? Are there other changes that could be made to improve competition in the relevant markets?

Do the provisions of the CCA on cartels, horizontal agreements and primary boycotts operate effectively and do they work to further the objectives of the CCA?

Should the price signalling provisions of the CCA be retained, repealed, amended or extended to cover other sectors?

Do the joint venture provisions of the CCA operate effectively, and do they work to further the objectives of the CCA?

Do the provisions of the CCA on third line forcing operate effectively and do they work to further the objectives of the CCA?

Do the provisions of the CCA on resale price maintenance operate effectively, and do they work to further the objectives of the CCA?

Do the provisions of the CCA on secondary boycotts operate effectively, and do they work to further the objectives of the CCA?

Do the mergers provisions of the CCA operate effectively, and are they being applied effectively by regulators and the courts?

Do the statutory exemptions, exceptions and defences, including liner shipping, operate effectively, and do they work to further the objectives of the CCA?

Do the authorisation and notification provisions of the CCA operate effectively, and do they work to further the objectives of the CCA?

How accessible is the collective bargaining process for small businesses, and can they can use it without requiring substantial legal assistance or advice?

Is the code framework leading to a better marketplace, having regard both to the aims of the rules and the regulatory burden they could create?

What has been the experience of businesses in the use and implementation of codes of conduct?

Are the enforcement powers, penalties and remedies, including for private enforcement, effective in furthering the objectives of the CCA?

The Panel is interested in whether there are other remedies or powers (for example, in overseas jurisdictions) that should be considered in the Australian context.

What are the experiences of small businesses in dealing with the ACCC?

Are there any factors that make it difficult for small businesses to enforce their rights or otherwise take action in relation to competition issues?

Are there issues in key markets that raise competition concerns not addressed by existing anti-competitive conduct laws? If so, in which ways might they be addressed through competition-related policies?

6. Administration of Competition Policy

Are competition-related institutions functioning effectively and promoting efficient outcomes for consumers and the maximum scope for industry participation?

What institutional arrangements would best support a self-sustaining process for continual competition policy reform and review?

Was the Council of Australian Governments competition agenda, with reform payments overseen by the National Competition Council, effective?

What is the experience of businesses in dealing with the ACCC, the Australian Competition Tribunal and other Federal regulatory bodies?

What is the experience of businesses in dealing with state and territory regulators?

Fact sheet

fact sheet was issued together with the Issues Paper.

Source: The Australian Government Competition Policy Review

 

What is this review about?

This review has been set up to make sure that Australia has a supportive and healthy competitive environment.

Competition is important. It drives greater consumer choice in goods and services. It drives innovation among businesses. It drives more competitive prices for business and consumers and helps Australia to be as productive as possible.

Competition can be tough. This review isn’t about protecting anyone from the rough and tumble of competition. But it is about making sure that everyone can have a go.

Minister Billson announced on 27 March 2014 that the review would be run by an independent panel led by Professor Ian Harper with Mr Peter Anderson, Ms Su McCluskey and Mr Michael O’Bryan SC as panel members.


Why is the review important?

It has been over 20 years since the last wide ranging review of competition policy (the Hilmer review).

That review was positive for Australia, helping to raise our living standards. Consumers can now choose their telephone company and electricity provider. And consumers have greater choice about where and when they shop. The prices of many items fell. Doing business became easier and cheaper.

However, Australia is now a significantly different place. We are in a more interconnected world. More Australian businesses are exporting, and are facing competition from overseas. The impact of new technology has created new products and services. We can source products from all over the world via the internet.

In some parts of our economy more competition could provide even more choice of goods and services at more competitive prices for businesses and consumers.

This review will shine a light on where competition can provide further benefits to Australian consumers and businesses, and identify and eliminate unnecessary barriers that get in the way of businesses trying to enter or compete in Australian or overseas markets.


Is the review relevant to me?

We need all views to be heard because we want our recommendations to be practical. We want to hear from consumers and from businesses of all sizes, large and small, to make sure that we have considered all of the issues that can affect competition in Australia.

We want to hear if you think there are any laws or regulations that are stopping you from getting into business, or running your business in the way you need to.

For instance, we are keen to hear from businesses and consumers about the impacts that licensing restrictions; trading hour restrictions; and planning, zoning and development laws have on your business.

For example, do you have to apply for licences or other approvals to provide certain services to customers, or sell certain goods to consumers?

Do you compete with government businesses? Do you think they have an unfair advantage?

If you’ve dealt with the ACCC, have you been happy with the process? Do you know your rights and obligations under the competition law?

Is there enough competition in key markets such as groceries, fuel and electricity?

In areas where the government provides goods and services, do you have enough choice and are you able to access quality services?

The review is keen to hear from all interested parties on any issues that affect competition in the Australian economy.

How can I have my say?

You can send us your thoughts by going to the website below: www.competitionpolicyreview.gov.au/submissions/.

A written submission can be as short or as long as you like.

You can also use the ‘have your say’ option on the website and respond to some or all of the six key questions from the Issues Paper. Or you can just make a comment.

Submissions will be open until 10 June 2014. While we would prefer to receive submissions electronically, you can also mail them to:

Competition Policy Review Secretariat
The Treasury
Langton Crescent
PARKES ACT 2600

Public consultation forums will be held in May. You can subscribe to the review website (www.competitionpolicyreview.gov.au) to get alerts for upcoming consultations, and receive information on the progress of the review. Further written submissions will be sought following the release of the Draft Report.