The prohibition on acquiring shares or assets where the effect
is likely to be a substantial lessening of competition in a market
applies to all transactions, whether large or small by value or
volume, the industry or the size of the business. There is a common
misconception that small-to-medium sized enterprises
(SMEs) are not subject to competition laws as they
are "not big enough". This is not always the case - all
acquisitions should be considered carefully to ensure that any
competition risk is identified early and the transaction structure
contemplates any clearance requirements.
Prohibition on mergers or acquisitions
The Competition and Consumer Act 2010 (Cth)
(CCA) prohibits mergers or acquisitions that will
have the effect, or are likely to have the effect, of substantially
lessening competition. The CCA does not provide a threshold or
"safe harbour" based on transaction size, revenue or the
size of the company – all transactions should therefore
