New Laws to Introduce "Effects Test" for Misuse of Market Power
On 5 September 2016, the Federal Government released for consultation exposure draft legislation to make a range of substantive amendments to the Competition and Consumer Act 2010 (CCA), including introducing an "effects test" into the prohibition against misuse of market power. The widely anticipated Competition and Consumer Amendment (Competition Policy Review) Bill 2016 (Bill) adopts the recommendations of the Harper Competition Policy Review in full - a move the Federal Government announced on 16 March 2016.
The ACCC has also released its draft framework for proposed guidelines on the new misuse of market power prohibition as well as the proposed new prohibition against concerted practices.
In this alert, we provide an overview of the changes to misuse of market power and some initial observations on the ACCC's draft framework guidelines, as well a brief summary of the other proposed changes which will be introduced by the Bill.