2016-01-29
Competition is good for business. It can provide consumers with more choices, lower prices and better service. Businesses compete against each other all the time, but when a business uses its market dominance to weaken competition or freeze out new players, then the playing field is no longer level.
Do you think the law should prevent predatory and anti-competitive behaviour by corporations?
Competition is good for business. It can provide consumers with more choices, lower prices and better service. Businesses compete against each other all the time, but when a business uses its market dominance to weaken competition or freeze out new players, then the playing field is no longer level.
Are you a small business owner? Do you work for a small business? Are you a patron of a small business?
Have a think about your local area, favourite shops, service providers, cafes and businesses.
Take the following real-life example: When a major supermarket opened near a family grocery shop, the supermarket was able to extract more favourable terms from the fruit distributer. When the family grocer sold grapes for $1.99, the supermarket changed their price to $1.79. The supermarket could absorb the loss and later increased its prices. The family grocer was unable to compete with the predatory pricing and was driven out of business.
But under current Australian competition law, it is very difficult to prove that the PURPOSE of the supermarket’s actions was to reduce competition.
Competition law needs to allow courts to consider the EFFECT the actions of a dominant business have on competition and small business. This is what has been recommended by the Harper Review.
Unfortunately the federal government has refused to accept that recommendation, and has commenced yet another review. Submissions to this review can be made until 12th February 2016. Click here to make a submission.
Support your local businesses, support innovation and support an EFFECTS TEST, so all businesses can compete on a level playing field. Make a submission and remind Treasury of the obvious need for an effects test.
The Greens have created a submission guide with key small business groups.
Spread the word! Ask your friends to support their favourite small business and service provider.