Merger reforms are needed, will make a real difference

The Senate Economics Legislation Committee inquiry found that the Albanese Government’s merger reforms will ensure the ACCC can perform its critical work to support competition and productivity in the economy.

 

For too long, mergers have been able to skate by the ACCC without review, and when they are reviewed, can be subject to delays and drawn-out court battles.

 

These merger reforms – the biggest in almost 50 years – will ensure that mergers over a certain threshold, or in certain sectors like the supermarkets, are notified and reviewed by the competition experts at the ACCC.

 

Mergers will be reviewed and approved in new shorter and stricter time frames, and mergers that are in the national interest will be fast tracked.

 

Critically the ACCC will have new powers to address creeping acquisitions that happen over many years and have real impact on small and medium businesses and their customers.

 

This is a win-win for businesses and the community – faster mergers with more certainty, and a real strengthening of competition and productivity.

 

Witnesses to the Committee inquiry told the parliament these reforms are needed; they will give more confidence to everyone and ensure they are delivered faster than before.

 

The Committee has recommended the bills be passed and looks forward to the next stage of consultation.

 

Quotes attributable to Senator Jess Walsh:

 

“These reforms to our merger system will make sure the ACCC can play its full role in supporting competition in the economy and making sure the consumers get a good deal”

 

“Supporting greater competition and productivity is an important priority of the National Competition Policy and will deliver real change for consumers and for businesses.”

 

Quotes from the Committee’s Inquiry:

Business Council of Australia

“The BCA considers the improved legislation to be a useful step in the right direction, compared to the original mergers proposal, and it presents an opportunity to achieve greater certainty, more simplicity and increased timeliness for merger proponents.” – Mr Stephen Walters, Chief Economist, Business Council of Australia

 

“These are significant national reforms—the biggest in half a century in this space” – Mr Stephen Walters, Chief Economist, Business Council of Australia

 

“In relation to the [current] informal clearance regime, there were no timelines associated with that. This bill provides a framework around the timeframe through which acquisitions will be assessed. I think that will assist businesses to more confidently help bring their measures forward” – Ms Alice Bailey, Senior Economist, Business Council of Australia

 

Property Council of Australia

“To meet the government’s stated goal of a 1 January 2026 start-date for the new regime, and a voluntary opt-in transition period from 1 July 2025, the parliament must pass these reforms before the end of this year

 

Council of Small Business Organisations Australia

“COSBOA is supportive of the Bill which seeks to overhaul the existing merger framework and replace it with a mandatory and suspensory administrative system for acquisitions. For small businesses to successfully co-exist with larger businesses, national competition laws must provide appropriate mechanisms to limit both anti-competitive structures and behaviours. Greater regulation of serial acquisitions, for example, will assist in this aim.

 

Australian Competition and Consumer Commission (ACCC)

“What the reform will do, when it is in place, is it will give assurance to the community that the ACCC can see and assess transactions that may pose risk and prevent the very small number of transactions that pose the most risk to competition, consumers and the economy.” – Chair Gina Cass-Gottlieb

 

“It will also, as every witness before this committee this morning has noted—provide a more certain, timely, efficient and transparent process for business and for the wider community, and we are very keen to commence our engagement in a smooth transition and implementation as soon as possible.” – Chair Gina Cass-Gottlieb

 

Mr Rod Sims AO (Former ACCC Chair):

“This new regime will bring a lot more economics to bear. We’ll get better economic outcomes for the economy, so I really think it’s a very welcome change. I’m delighted that parliament is considering this so quickly because there’s a lot of expectation around this regime, and that creates uncertainty”

 

“I’ve been stunned, as we’ve gone through this process, how many transactions the ACCC hadn’t seen that it wasn’t aware of—obviously that it hadn’t seen. So a mandatory system, as the rest of the world largely has, is very important”

 

ENDS

Media contact for Senator Walsh: Riley Geary – 0402 261 235