Acts of Parliament assented to - Act No. 87 to 94 of 2017

Overview

The Competition and Consumer Amendment (Misuse of Market Power) Act 2017 was enacted to address the problem of misuse of market power by large corporations, which can result in anti-competitive practices and harm to smaller businesses and consumers. This Act was passed by the Parliament of Australia and assented to by the Governor-General on 23 August 2017. The primary policy objective of this Act is to enhance the Australian Competition and Consumer Commission's (ACCC) ability to investigate and address instances of significant market power being used in an anti-competitive manner, thereby promoting fair competition and protecting consumers. The legislation is designed to strengthen the regulatory framework in place to ensure that large corporations do not exploit their market position to the detriment of the broader market and consumer interests.

Scope and Application

The Competition and Consumer Amendment (Misuse of Market Power) Act 2017 extends and amends the Competition and Consumer Act 2010, targeting the misuse of market power by entities with significant market power. This Act applies to entities, including businesses and corporations, that possess substantial market power, meaning they can influence prices or non-price conditions of trade. It imposes restrictions on anti-competitive practices such as exclusive dealing, exclusive supply, and market sharing agreements, aiming to ensure fair competition and protect consumers. The Act operates on a national level, applying across the Commonwealth of Australia, and its provisions can be extended or refined through subordinate instruments. Notably, the Act does not explicitly state any exclusions or exemptions, suggesting its broad application to entities within its scope unless otherwise specified by regulation or case law.

Key Provisions

The Competition and Consumer Amendment (Misuse of Market Power) Act 2017 (Sections 3 to 6) introduces key changes to the Competition and Consumer Act 2010. It specifically targets large entities, defined as those with a turnover of at least $100 million, and imposes obligations on them to report any agreements that may substantially lessen competition in a market. These entities are also required to notify the Australian Competition and Consumer Commission (ACCC) of certain arrangements or understandings that could affect market competition. The Act empowers the ACCC to seek court orders against entities that contravene these provisions, allowing for significant penalties. Under the Public Governance and Resources Legislation Amendment Act (No. 1) 2017 (Sections 2 to 5), the Act outlines the obligations of Commonwealth entities and Commonwealth companies. It mandates rigorous governance, performance, and accountability standards, including the establishment of a governing body for each entity and company. These entities and companies must also prepare and publish annual reports that detail their performance and resource management. The Act further requires these entities to ensure compliance with the new governance standards and to report any breaches to the relevant authorities. The Petroleum and Other Fuels Reporting Act 2017 (Sections 2 to 7) outlines specific reporting requirements for entities involved in the petroleum and fuel industries. It mandates the reporting of information about the production, supply, and consumption of petroleum and other fuels to the relevant government departments. These reports must include detailed data on quantities, locations, and methods of production and supply, ensuring transparency in the fuel market. The Act imposes strict timelines for the submission of these reports and requires accurate and complete information to be provided. For breaches of the provisions under these Acts, significant penalties may apply. Under the Competition and Consumer Amendment (Misuse of Market Power) Act 2017, entities that fail to comply with the reporting obligations or contravene the provisions can face substantial fines, with penalties reaching up to $10 million for corporations and $1 million for individuals, depending on the severity and intent of the breach. Similarly, under the Petroleum and Other Fuels Reporting Act 2017, non-compliance can result in fines of up to $275,000 for corporations and $55,000 for individuals. Additionally, the Public Governance and Resources Legislation Amendment Act (No. 1) 2017 imposes administrative penalties for non-compliance, which can be substantial, reflecting the importance of governance and accountability in managing public resources.