Competition regulation
in Australia: a report
card
The 2011 Colin Clark lecture
Stephen P. King
Monash University
Is competition regulation a
contradiction in terms?
• The law and the market place
• Antitrust laws
• The scope of my report card:
• ‘Bread and butter’ antitrust laws
• Regulatory innovation
Bread and butter!
Cartel laws:
Sound OK but ….
Issues of judicial interpretation make them
among the world’s weakest laws in practice.
Bread and butter!
Cartel laws:
Sound OK but ….
Issues of judicial interpretation make them
among the world’s weakest laws in practice.
Report Card Rating: D. Young Aussie must try
harder in ‘cartels’ and avoid being misled by
political opportunism.
Bread and butter!
Abuse of market power laws:
Ambiguous – but that is not unexpected.
The problem of politicians.
Bread and butter!
Abuse of market power laws:
Ambiguous – but that is not unexpected.
The problem of politicians.
Report Card Rating B. Young Aussie has shown
balance and foresight in the area of ‘abuse of
market power’, but must be wary of the
political bullies in the playground.
Bread and butter!
Merger laws:
Unique process by international standards but:
• Works pretty well
• May be under threat
Bread and butter!
Merger laws:
Unique process by international standards but:
• Works pretty well
• May be under threat
Report Card Rating B+. Young Aussie has done
a good job balancing different incentives for
mergers. However, this situation is unlikely to
last.
Innovations
Transparency reforms
• Substantiation notices
• Clear pricing rules
• ATM charging reforms
Innovations
Transparency reforms
• Substantiation notices
• Clear pricing
• ATM reforms
Report Card Rating A. Aussie is leading the
world in simple transparency reforms. More of
the same please.
Innovations
Reducing switching costs
• Mobile number portability
• Bank account portability
Innovations
Reducing switching costs
• Mobile number portability
• Bank account portability
Report Card Rating A. Aussie has careful
analysis of costs and benefits driving on going
policy. Be nice if someone did a retrospective
on mobile number portability – but can’t ask
for everything.
Conclusion
• In innovative areas of regulation – we are
among the best in the world.
• In bread and butter competition laws, the
political agenda is causing significant
problems.