ACCC seeks comment on new revised merger guidelines
The Australian Consumer and Competition Commission has issued its Draft Merger Guidelines 2008 for public comment, ACCC Chairman, Mr Graeme Samuel, announced today.
The guidelines outline the general principles underpinning the ACCC's approach to merger analysis under section 50 of the Trade Practices Act 1974.
"The ACCC last published analytical guidelines for mergers in 1999. These new draft guidelines reflect developments in international best practice, contemporary views on merger analysis and the ACCC's experience since 1999," he said.
"The ACCC is committed to transparency in its analytical approach to merger analysis. Together with the growing body of public competition assessments posted on the ACCC website, the Draft Merger Guidelines 2008 provide an enhanced level of predictability and certainty to merger parties, the business community, their advisers and the public.
"The Draft Merger Guidelines 2008 do not represent a new approach by the ACCC. The competition test is the same and analysis of the market and merger factors remains a vital element in merger assessment. Rather, they are a better reflection, and more cogent articulation, of the ACCC's current practice in relation to merger analysis.
"There is an increased emphasis in the guidelines on the theories of competitive harm we examine in merger analysis. There is a useful and updated discussion on the principles we have regard to in considering enforceable undertakings in merger matters. And there is concise but important guidance to the business community on when they should consult the ACCC on merger proposals.
"The ACCC will continue to assess each merger on its merits according to the specific nature of the transaction, the industry and the particular competitive impact likely to result in each case."
The ACCC invites submissions on the Draft Merger Guidelines 2008. The Draft Merger Guidelines 2008 will be available on the ACCC website at www.accc.gov.au/mergers.
Submissions should be forwarded electronically (preferably in PDF format) to mergers@accc.gov.au with the title Submission re Draft Revised Merger Guidelines (attention Suzie Copley). Alternatively submissions may be forwarded by fax to 02 9231 5652 or by mail to Mergers Branch, ACCC, GPO Box 3648, Sydney NSW 2001. The closing date for submissions is Friday 28 March 2008.
Section 50 of the Trade Practices Act 1974 prohibits mergers and acquisitions that will have the effect, or are likely to have the effect, of substantially lessening competition in a market. Section 50(3) sets out a non-exclusive list of matters that must be taken into account in determining whether an acquisition is likely to substantially lessen competition.
The ACCC conducts merger assessments in accordance with its published guidelines – the Merger Review Process Guidelines and Formal Merger Review Process Guidelines, both of which are the available on the ACCC website, www.accc.gov.au.
