The Australian Competition and Consumer Commission will extend its explanation of the reasons for its merger decisions under the current informal merger clearance process, ACCC Chairman, Mr Graeme Samuel, announced today. 

Addressing the National Press Club, Mr Samuel said that the ACCC would now publish reasons for a decision if a merger was rejected, was approved with enforceable undertakings, or if the parties sought public disclosure.
 
This should provide the market with a better idea of the ACCC's analysis of various markets and associated merger and competition issues.

"It will also alert the market to the circumstances where the Commission's assessment of the competitive conditions in particular markets is changing, perhaps as a result of such developments as technological change or as a result of previous mergers that have already occurred in those particular markets".

The reasons for a decision will normally be published on the ACCC's website at the same time, or shortly after, its merger decision is announced.

"The Commission will continue to protect confidential information it has received either from the merger parties or through its market inquiries.  In particular, the Commission will continue to strenuously protect the identity of market participants who provide it with sensitive market intelligence. The Commission believes that in the majority of cases it will be possible to provide an appropriately detailed explanation of the reasons behind a merger decision while protecting confidential information and its sources".

Where this was not possible, maintaining confidentiality will be the ACCC's paramount concern.

"The Commission is also conscious that certain mergers and acquisitions can be particularly market sensitive.  Where necessary the Commission will frame the content of its reasons and/or the timing of their release with these market sensitivities in mind.

"Notwithstanding these necessary limitations on the information the ACCC will publish, or its timing, I believe that the Commission's new practice of publishing its reasons for certain of its merger decisions will provide market participants with the further insights and guidance they have been seeking on the Commission's merger decisions".

Mr Samuel said the move was consistent with the recommendations of the Dawson Review that the Commission should publish its reasons for certain merger decisions and will enhance the accountability of the ACCC's informal merger clearance process.
  
Mr Samuel also commented on the ACCC's approach to contact with the media and its enforcement priorities.  A full copy of the speech will be available on the ACCC's website,  www.accc.gov.au.