Trade Practices Act – striking the right balance


Australia has very effective competition law. The Trade Practices Act was introduced in 1974 to prohibit large businesses using their market power for anti-competitive purposes and has ample resources to enforce these rules. The only significant change that is required is the removal of the “Birdsville Amendments” however this was defeated in the Spring sitting of the 2008 Parliamentary session.

One particular area that has received attention is the notion of ‘creeping acquisitions’ - this claim is without substance. Over the last five years, only a handful of independent stores have been acquired by the leading retailers; most stores have been acquired by other independent retailers. The Australian Competition and Consumer Commission (ACCC) has ample powers to assess, and if need be, oppose the acquisition of a single retail store. For example, in June 2008, the ACCC opposed the acquisition of the Karabar supermarket by Woolworths.

ANRA agrees with the long established principle, endorsed by the Council of Australian Governments (COAG), that new regulation is only justified where a clear net public benefit exists which can only be obtained through legislative action. In such cases, legislation should impose minimal costs and constraints on business and be proportionate to the issues being addressed.