Big Win for Small Business with new Section 46 Effects

Nationals Senator for Victoria, Bridget McKenzie said new legislation to strengthen Australia’s
competition law will benefit consumers, business and the economy, especially in
regional areas.
“The Harper Review recommendations strengthen section 46 of the Competition and Consumer Act 2010.
“It found that current misuse of market power law is not reliably enforceable and does not effectively target and deter anti-competitive conduct.
“Some unscrupulous traders have taken advantage of this weakness and ripped off consumers.
“The changes strongly supported by peak small business organisations and by the ACCC will end the long term abuse of market power by big business including supermarkets.
“The ACCC will now be able to look at the actual or likely impact of conduct on a market”.
“Now, small businesses like bottle shop owners, book shops and small independent supermarkets will have a far greater chance to compete.
 “The main changes to section 46 remove the ‘take advantage element’ which could be an excuse for anti-competitive conduct by a firm with substantial market power.
“The new provision will prohibit corporations with substantial market power from engaging in conduct that has the purpose, effect, or likely effect of substantially lessening
competition.
Senator McKenzie said changes to Section 46 which she has been advocating for many years, will make for more competitive markets which in turn support small businesses to compete on their merits against competition with stronger market power.
“The amended Section 46 will achieve better outcomes for consumers by protecting smaller operators from larger operators’ who may misuse market power.
“The changes will not shield any business from the natural effects of strong competition so vital to a strong and success small business community.
“However it is important that the new test is carefully considered by businesses with a significant degree of power in a market.
“There are an estimated two million small businesses in this country which make up more than 97 per cent of all businesses.
“It is important they have a level playing field for the benefit of their success and the benefit of the local community.