Part one: Year in review
Outlook and challenges for 2010–11
Outlook
The next financial year will be one of consolidation, with the implementation of the ACL, the growing prospect of criminal prosecution for cartel conduct, and the expansion of the AER's functions.
The ACL will be implemented through the single-law/multi-regulator model as agreed by COAG, including the use of new penalty provisions, national leadership in product safety, the identification of unfair terms in standard form contracts, and a greater emphasis on consumer guarantees.
Activity under competition law is inherently reactive in responding to the market. The ACCC will continue to:
- apply consistency and rigour in negotiation and enforcement of compliance with merger undertakings
- actively investigate anti-competitive conduct, including criminal cartel conduct and misuse of market power.
The next 12 months will require the ACCC to:
- develop a regulatory regime for the NBN and bed down a streamlined access regime if the legislation is passed by parliament
- take a more holistic approach to the regulation of rail infrastructure and other logistics-related infrastructure
- monitor and advise government and the public on fuel prices and market conditions
- prepare for the National Energy Customer Framework, including methods to communicate with end consumers of energy and other utility services.
The ACCC will continue to balance the imperatives of business, the needs of consumers and its duty to enforce the law without fear or favour knowing that it affects 22 million Australians in almost every aspect of their daily activities.
Challenges
The ACCC expects 2010–11 to be a challenging year as legislative reforms are implemented and the agency takes on new responsibilities. It has identified a number of specific challenges relating to enhancing organisational capacity; refining communication and engagement with stakeholders; and using the full range of tools now at its disposal to better promote competition and protect consumers in changing market environments.
Capacity building in an expanding organisation
- development, retention and coordination of staff expertise, and provision of flexible staffing structures
- high levels of communication within and between branches
- delivery of high-quality, responsive legal advice from both internal and external lawyers within an integrated national framework
- business analysis tools, infrastructure upgrades and governance of information management
- enhanced support for leadership and performance management
- comprehensive strategic review of agency communications
- financial positioning to meet expanded agency roles and responsibilities
- bedding down a new document management system which will better support the ACCC's investigation and litigation processes, as well as the data-intensive monitoring involved in the ACCC's and AER's regulatory functions.
Communicating with business and consumers
- consultation with industry bodies and community associations on the new elements of the ACL, the cartel provisions, and industry codes of conduct
- strengthening relationships with state and territory agencies and ASIC to effectively implement the full scope of the ACL single-law/multi-regulator model
- work with the Australian Communications and Media Authority, the Telecommunications Industry Ombudsman, the Department of Broadband, Communications and the Digital Economy and industry on emerging telecommunications issues affecting consumers
- better engagement with consumers and business through the use of a broader range of communication channels, including Web 2.0.
Fostering competition and consumer protection
- increasing penalties for anti-competitive conduct
- continuing to use a broad array of enforcement tools for more proportionate and timely responses to redress harm to consumers, including in relation to online transactions and complex consumer contracts
- learning lessons from overseas counterparts on the application of criminal laws.