ACCC Calls for Stronger Merger Oversight to Protect Consumers and Businesses, Australia

Australian consumers and businesses face the risk of higher prices and limited choices if anti-competitive mergers are allowed to proceed unchecked, according to a submission by the Australian Competition and Consumer Commission (ACCC) to the government’s Competition policy review. In its preliminary submission, the ACCC responded to the three merger reform options proposed in a Treasury paper and advocated for its own proposed changes. The ACCC highlighted the lack of tools it currently possesses to detect and prevent all anti-competitive mergers, which can result in harmful mergers taking place without their knowledge. The existing merger regime in Australia does not require parties to notify the ACCC of proposed acquisitions or obtain ACCC clearance, thus making Australia an outlier among most OECD economies. The ACCC argued for a balance between minimal regulatory burden for non-anti-competitive acquisitions and a structured, transparent process for acquisitions with potential anti-competitive effects. The ACCC also emphasized the importance of transparency, certainty, and alignment with international standards in competition policy. The preliminary submission is available on the ACCC website, and a more detailed submission will be made to Treasury in January.