On Wednesday, 16 March 2016, Prime Minister Malcolm Turnbull
announced that the Federal Government will adopt the Harper Review
recommendations to substitute an "effects test" for the
current "purpose" (or "taking advantage") test
in the misuse of market power provisions of the Competition and
Consumer Act 2010.
Proponents for the change have argued that the current law
leaves small businesses vulnerable to abuse by big players, while
opponents argue that the proposed change will create uncertainty
for all businesses big or small and have a "chilling
effect" on innovation.
In this alert, we provide a brief recap of the current
prohibition against misuse of market power, outline the
recommendations in the Harper Review, and conclude with a
discussion of the possible implications of the proposed
changes.
