Potential mis-use of Trade Practices ACT: Telcos warned

The Australian Competition and Consumer Commission has expressed concerns about the potential for misuse of the Trade Practices Act's telecommunications regulation provisions and processes.

Addressing the ATUG seminar in Sydney today, ACCC Chairman, Professor Allan Fels, said the provisions were originally intended to encourage commercial negotiations and, if that failed, to allow arbitration to resolve matters.

"In fact, what has happened is that there have been commercial negotiations, arbitration, followed by lengthy re-arbitration - with the present re-arbitration of PSTN taking at least 18 months.

"The ACCC is concerned at the potential for rent-seeking and rent-protection actions that the processes can afford under the Act.

"The ACCC is not opposed to Telstra having normal rights of appeal under arbitration, that is appeals on misinterpretation of statutory economic criteria and on any procedural defect in an arbitration.

"But the ACCC is concerned that the Act provides far more rights that normally available in arbitration in terms of the right of full re-arbitration and a further right of legal appeal on that re-arbitration".