ACCC calls for comment on anti-competitive conduct guide in telecommunications markets

The Australian Competition and Consumer Commission today called for comments on the use of competition notices to tackle anti-competitive conduct in telecommunications markets.

The draft guidelines set out the matters the ACCC will consider when deciding whether to issue a competition notice in response to allegedly anti-competitive conduct.

The ACCC has the authority to issue a competition notice to a carrier or carriage service provider who is allegedly engaged in anti-competitive behaviour under Part XIB of the Trade Practices Act 1974.

The practical effect of a competition notice is to require the recipient to cease the conduct or face the prospect of court proceedings for potentially significant penalties and/or damages.

"Competition notices are an important mechanism as they allow the ACCC to take timely action in responding to alleged anti-competitive behaviour in telecommunications markets,’ ACCC Chairman, Mr Graeme Samuel, said today.

"This is very important as anti-competitive conduct in telecommunications markets has the potential to cause rapid and permanent damage to competition in these markets.

"Given the significant consequences of being issued with a competition notice, the ACCC feels it is important to provide clear guidance to the telecommunications industry on the factors the ACCC considers when determining whether a competition notice should be issued.

"These guidelines are intended to provide that direction."

The ACCC is calling for submissions from interested parties on the draft guidelines, which are available on the ACCC website or by calling Catherine Dermody on (03) 9290 1909.

The closing date for submissions is Wednesday, 24 December 2003.

Background

Section 151AP of the Trade Practices Act 1974 requires the ACCC to formulate guidelines to which it must have regard when deciding whether to issue a competition notice.

An amendment to the Act in December 2002 required that guidelines issued under section 151AP must address a number of factors, including the appropriateness of the ACCC issuing a competition notice as opposed to taking other action under the Act.

The current guidelines were issued before this amendment and do not therefore address the issue. The ACCC also felt it was timely to update the guidelines to reflect its experiences in considering whether or not to issue competition notices since the first guidelines were drafted in July 1997.