Law to combat misuse of power
VEGETABLE industry body Ausveg has welcomed the legislation of amendments to strengthen Australia's competition laws, including the addition of an "effects test”, saying it will provide a greater ability for the Australian Competition and Consumer Commission to take action against serious misuses of market power where they are uncovered and ensure an open and transparent business environment in the Australian fresh produce industry open to new competition.
Ausveg national manager for public affairs Jordan Brooke-Barnett said this reform, which involves the addition of the "effects test” to Section 46 of the Competition and Consumer Act 2010, will provide the ACCC with the ability to take action where the actions of a company have had the effect of causing a substantial reduction in competition.
The reformed Section 46 will prohibit a corporation from engaging in conduct with the purpose, effect or likely effect of substantially lessening competition in a market in which it directly or indirectly participates. The additional amendments will come into effect once they have passed the Parliament.