Big businesses fear new ACCC rule

ECONOMY AUSTRALIAN NEWS
Big business is fighting back against a proposal that will see competition laws expanded to potentially make competitors partially responsible for the financial plight of their rivals, The Australian Financial Review reports.
The proposal, being backed by competition regulators and Small Business Minister Bruce Billson, would result in an ‘effects test’ to ensure companies consider the impact of any business decision they make on the viability of their rivals.
Among the parties opposed to such a move are Qantas Airways, Woolworths, Wesfarmers, Caltex and Foxtel, with the Business Council of Australia hitting back at the plan.
“This sort of legislation causes uncertainty, inefficiency and discourages innovation,” Danny Gilbert, the BCA’s competition inquiry taskforce chair and Gilbert + Tobin managing director, told the AFR.
The effects test is a possible recommendation to the stem from the current competition review being carried out by a team led by Ian Harper.