The Australian Competition and Consumer Commission had an increased workload with new issues and responsibilities in its first full year of operation, according to its Annual Report 1996-97 which was tabled in Federal Parliament today.
The principal reason for this was functions arising from the progressive transition from sector-specific to competition oriented regulation in key areas of the economy, it said.
"The combination of competition and consumer protection agency and public utility regulator will become progressively more apparent in the Commission's work.
"The Commission is now deeply involved in issues of market regulation as a result of the privatisation of utilities and the formation of national markets in gas, electricity, telecommunications, airports and rail."
The report says the ACCC's priorities had been redefined away from areas exposed to import competition, with the focus now on the non-traded goods and services sector of the economy.
"Involvement in the micro-economic reform processes represents a major and growing area of work to which the Commission devotes significant resources, identifying and resolving both competition and consumer issues. This is an evolving role which is likely to peak in the next few years.
"Of particular importance is work arising under Part IIIA of the Trade Practices Act, introduced as part of the competition policy reform process. Part IIIA establishes a regime for third party access to facilities of national significance - for example in the electricity, gas, telecommunications and various transport sectors."
The report says that in the enforcement and investigation area the telecommunications services industry attracted the most 'pursued complaints' activity, followed by the domestic appliance industry, and then travel agency services, pharmaceutical cosmetic and toiletry retailing, clothing retailing, banks and automotive fuel retailing.
In the top ten of conduct/issues pursued, the most common complaint was about misleading or deceptive advertising followed by misrepresentations about the characteristics of a good or service and price misrepresentations.
In 1996-97, the ACCC was notified of 169 new merger matters, of which the majority did not require detailed assessment. Seven matters were not proceeded with or were amended following the ACCC's expressions of concern that they were likely to substantially lessen competition.
"The Commission has continued to give increased emphasis to efficiency considerations when examining the competitive effects of mergers, and in particular, to the need for firms to achieve such efficiencies in order to enhance their international competitiveness. In examining three initiatives to rationalise the plastics industry in 1996-97 the Commission recognised that the internationalisation of trade and commerce (import competition in particular) had put pressure on domestic businesses to seek cost efficiencies."
The report also referred to the international competitive framework noting "the Commission has maintained, and will continue to maintain the indicative position of not opposing mergers where there is, or there is the potential for, a significant, sustained and competitive level of independent imports".
In 1996-97 the ACCC received 34 applications for authorisation under the Act. [The granting of authorisation provides immunity from court action for some restrictive practices/mergers that could otherwise breach the Act.] Fifteen of the new applications related to the National Electricity Market, reflecting the competition policy reform program which has extended the reach of the Act to previously exempt areas. Eight matters were finalised, including some lodged in the previous year.
For further information about this media release: Ms Lin Enright, Director, Public Relations, (02) 6264 2808 [or (02) 6243 1108 from October 27] MR 140/97 22 October 1997
On-line versions of many of the ACCC's most important guidelines and publications and on-line text of 1996-97 media releases are available on the ACCC's Home Page http://www.accc.gov.au.
NB: From 27 October 1997, the Australian Competition and Consumer Commission national office will be located at 470 Northbourne Avenue, Dickson. The new general switchboard number will be (02) 6243 1111 and facsimile will be (02) 6243 1199. The ACCC's Belconnen office closes on 23 October 1997.
The principal reason for this was functions arising from the progressive transition from sector-specific to competition oriented regulation in key areas of the economy, it said.
"The combination of competition and consumer protection agency and public utility regulator will become progressively more apparent in the Commission's work.
"The Commission is now deeply involved in issues of market regulation as a result of the privatisation of utilities and the formation of national markets in gas, electricity, telecommunications, airports and rail."
The report says the ACCC's priorities had been redefined away from areas exposed to import competition, with the focus now on the non-traded goods and services sector of the economy.
"Involvement in the micro-economic reform processes represents a major and growing area of work to which the Commission devotes significant resources, identifying and resolving both competition and consumer issues. This is an evolving role which is likely to peak in the next few years.
"Of particular importance is work arising under Part IIIA of the Trade Practices Act, introduced as part of the competition policy reform process. Part IIIA establishes a regime for third party access to facilities of national significance - for example in the electricity, gas, telecommunications and various transport sectors."
The report says that in the enforcement and investigation area the telecommunications services industry attracted the most 'pursued complaints' activity, followed by the domestic appliance industry, and then travel agency services, pharmaceutical cosmetic and toiletry retailing, clothing retailing, banks and automotive fuel retailing.
In the top ten of conduct/issues pursued, the most common complaint was about misleading or deceptive advertising followed by misrepresentations about the characteristics of a good or service and price misrepresentations.
In 1996-97, the ACCC was notified of 169 new merger matters, of which the majority did not require detailed assessment. Seven matters were not proceeded with or were amended following the ACCC's expressions of concern that they were likely to substantially lessen competition.
"The Commission has continued to give increased emphasis to efficiency considerations when examining the competitive effects of mergers, and in particular, to the need for firms to achieve such efficiencies in order to enhance their international competitiveness. In examining three initiatives to rationalise the plastics industry in 1996-97 the Commission recognised that the internationalisation of trade and commerce (import competition in particular) had put pressure on domestic businesses to seek cost efficiencies."
The report also referred to the international competitive framework noting "the Commission has maintained, and will continue to maintain the indicative position of not opposing mergers where there is, or there is the potential for, a significant, sustained and competitive level of independent imports".
In 1996-97 the ACCC received 34 applications for authorisation under the Act. [The granting of authorisation provides immunity from court action for some restrictive practices/mergers that could otherwise breach the Act.] Fifteen of the new applications related to the National Electricity Market, reflecting the competition policy reform program which has extended the reach of the Act to previously exempt areas. Eight matters were finalised, including some lodged in the previous year.
For further information about this media release: Ms Lin Enright, Director, Public Relations, (02) 6264 2808 [or (02) 6243 1108 from October 27] MR 140/97 22 October 1997
On-line versions of many of the ACCC's most important guidelines and publications and on-line text of 1996-97 media releases are available on the ACCC's Home Page http://www.accc.gov.au.
NB: From 27 October 1997, the Australian Competition and Consumer Commission national office will be located at 470 Northbourne Avenue, Dickson. The new general switchboard number will be (02) 6243 1111 and facsimile will be (02) 6243 1199. The ACCC's Belconnen office closes on 23 October 1997.