ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

Member Consultation —
Draft framework for misuse of market power guidelines

A
To provide businesses across the dental industry with the opportunity to contribute to changes that affect the commercial, technical and regulatory environment the Australian Dental Industry Association (ADIA) seeks member advice and guidance when making representations to government.

The following details pertain to an invitation that ADIA has received from the Australian Government to tender comment on behalf of the dental industry and appropriate representations have / are being made.
a

Subject:

Draft framework for misuse of market power guidelines

Status:

CLOSED

Comment Due Date:

Monday, 26 September 2016

Department / Agency:

Australian Competition and Consumer Commission (ACCC)

Background:

The ACCC is seeking comment from the dental industry on an exposure draft of a Bill to amend the Competition and Consumer Act (Cth) 2010 to implement, in part, reforms identified by the Competition Policy Review relating to the misuse of market power prohibition, section 46, of the Act.

Purpose:

The Australian Government has released an exposure Bill to implement reforms identified by the Harper Competition Policy Review. One area of reform included in the exposure Bill is to amend the misuse of market power prohibition, section 46, of the Competition and Consumer (Cth) Act 2010. If the Bill is enacted, the ACCC will publish guidelines about its approach to possible breaches of the misuse of market power prohibition.

The key clauses in the proposal are in clause 46(1) and 46(2) which are summarised below.

Wth respect to Clause 46(1), the Bill seeks to ensure that a corporation that has a substantial degree of power in a market must not engage in conduct that has the purpose of, or has or would be likely to have the effect of, substantially lessening competition in that or any other market.

With respect to Clause 46(2), the Bill seeks to ensure that without limiting the matters to which regard may be had in determining for the purposes of subsection (1) whether conduct has the purpose of, or has or would be likely to have the effect of, substantially lessening competition in a market, regard must be had to the extent to which: The conduct has the purpose of, or has or would be likely to have the effect of, increasing competition in the market, including by enhancing efficiency, innovation, product quality or price competiveness in the market; and Tthe conduct has the purpose of, or has or would be likely to have the effect of, lessening competition in the market, including by preventing, restricting, or deterring the potential for competitive conduct or new entry into the market.

The objective of the proposed misuse of market power provision is to prohibit unilateral conduct by a corporation with substantial market power that interferes with the competitive process by preventing or deterring rivals or potential rivals from competing on their merits. Sometimes this is broadly referred to as ‘exclusionary conduct’. The objective is not to protect individual competitors. Conduct by a corporation with a substantial degree of market power that harms an individual competitor should only be prohibited if it has a broader detrimental impact upon the competitive process itself.

Documents: Consultation Draft - Framework for misuse of market power guidelines [PDF]
.

Member Engagement:

ADIA-BAC Business Affairs Committee

Comments To:

ADIA Policy team via email at canberra@adia.org.au

a
ADIA member businesses with an interest in this issue are invited to comment by forwarding your thoughts via email to canberra@adia.org.au by the due date. Although comments of a technical / legal nature are welcome, a simple plain-English statement as to the extent this reform proposal will / will not affect your business is all that's required as such advice greatly assists ADIA in advocating on behalf of the dental industry, particularly in the context of our support for small business.

In pursuing policy reforms the work of the Association is set out in the ADIA Advocacy Agenda that seeks to create an environment in which businesses in the dental industry can grow, create jobs and operate sustainably.

Be sure to keep up to date on this issue by following ADIA on Facebook at www.facebook.com.au/dental.industry and by subscribing to the Twitter feed @AusDental. Members requiring further information can send an email to policy@adia.org.au or telephone 1300 943 094.


This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

A — A D I A . .S T R A T E G I C . .A L L I A N C E S

a

Dental Industry News