Australian Competition and Consumer Commission Chairman Rod Sims today outlined the ACCC's role in making the market economy work as it should for all Australians.
In an address to the National Press Club, Mr Sims said the ACCC needs to be an active regulator, taking strong enforcement action, and to be seen as such.
"We also need to explain our role and the logic underpinning the Competition and Consumer Act so that Australians have faith that a market economy works for them."
Mr Sims said everyone has a view about how markets should work and what the ACCC's role should be; in this sense all Australians are economic philosophers.
"Some think the ACCC should lower the price of petrol, or stop firms charging different prices in different locations for the same product, or prevent a new store opening because it will cause harm to the existing incumbents."
"We cannot vacate these debates and leave a void for others to fill. If we do not engage, and people therefore come to see large gaps in our economic laws, then there are at least two unfortunate implications."
"Either people lose faith that our market economy works for them or there will be calls for more, or misconceived, regulation when, usually, what we have is best suited to enabling our economic prosperity," Mr Sims said.
In terms of being an active regulator Mr Sims said, “With quite limited resources, the ACCC achieves a lot both directly and much more, indirectly."
"Even when taking a case, or if we lose a case, often messages are sent and behaviour can change."
"In addition, companies know we will enforce the law, the vast majority will not contemplate cartel or other anti-competitive activity. They have active compliance programs to ensure they do not mislead consumers, and a range of, no doubt, commercially attractive mergers are not taken forward."
The Chairman’s speech to the National Press Club will be available at www.accc.gov.au/speeches