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A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes
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Registered 18 Jun 2013
Introduced HR 17 Jun 2013
Table of contents.

2010‑2011‑2012‑2013

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Competition and Consumer Amendment (Strengthening Rules About Misuse of Market Power) Bill 2013

 

No.      , 2013

 

(Mr Oakeshott)

 

 

 

A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes

 

 


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Amendments                                                                                                3

Competition and Consumer Act 2010                                                                     3

 


A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Competition and Consumer Amendment (Strengthening Rules About Misuse of Market Power) Act 2013.

2  Commencement

                   This Act commences on the day after this Act receives the Royal Assent.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendments

  

Competition and Consumer Act 2010

1  Before section 45

Insert:

Subdivision ARestrictive trade practices

2  After subsection 46(1)

Insert:

  (1AAAA)  A corporation that has a substantial degree of power in a market must not engage in conduct if it is reasonably likely that the conduct will, directly or indirectly, result in any of the following:

                     (a)  the elimination of, or substantial damage to, a competitor of the corporation or of a body corporate that is related to the corporation in that or any other market;

                     (b)  the prevention of entry of a person into that or any other market;

                     (c)  the deterrence or prevention of a person from engaging in competitive conduct in that or any other market;

                     (d)  a lessening of competition in any part of the supply chain in that or any other market.

3  Subsection 46(1AAA)

After “subsection (1)”, insert “or (1AAAA)”.

4  Subsection 46(1A)

After “subsections (1)”, insert “, (1AAAA)”.

5  Paragraph 46(1A)(a)

After “paragraphs (1)(a)”, insert “, (1AAAA)(a)”.

6  Paragraph 46(1A)(b)

After “paragraphs (1)(b) and (c)”, insert “, (1AAAA)(b) and (c)”.

7  Subsection 46(4A)

After “subsection (1)”, insert “or (1AAAA)”.

8  Subsection 46(5)

After “subsection (1)”, insert “or (1AAAA)”.

9  After section 50

Insert:

Subdivision BInvestigation power

50AA  Commission may require corporation to provide information

             (1)  This section applies if the Commission reasonably believes that circumstances exist to indicate that there has been or might be a contravention of section 46.

             (2)  The Commission may give a corporation a written notice that requires the corporation to do any or all of the following:

                     (a)  prepare and give to the Commission a supply chain impact statement in accordance with subsection (3), within 21 days after the notice is given to the corporation;

                     (b)  give information, or to produce a document, to the Commission within 21 days after the notice is given to the corporation;

                     (c)  have an officer attend before a representative of the Commission, at the specified time and place, to answer questions.

             (3)  For the purposes of paragraph (2)(a), a supply chain impact statement must do the following:

                     (a)  identify the parts that, in the corporation’s view, make up the supply chain for the relevant market;

                     (b)  describe the investigations the corporation has made in order to consider the immediate and potential future impacts of the corporation’s conduct on that supply chain;

                     (c)  set out the corporation’s conclusions about the likely immediate and future impacts of the corporation’s conduct on each part of that supply chain.

             (4)  The requested information or documents, or the questions (when asked), must relate to at least one of the following:

                     (a)  the circumstances referred to in subsection (1);

                     (b)  the possible contravention of section 46 referred to in subsection (1);

                     (c)  matters connected with those circumstances or that contravention, knowledge of which may assist the Commission in determining whether there has been or will be a contravention, including (without limitation) matters relating to the impact of the corporation’s conduct on any parts of the supply chain for the relevant market.

             (5)  The notice must:

                     (a)  name the corporation to which it is given; and

                     (b)  specify the circumstances that the Commission believes exist that could give rise to a contravention of section 46; and

                     (c)  explain the effect of sections 50AB, 50AC and, if relevant, 50AD and 50AE.

             (6)  The notice may relate to one or more documents or pieces of information.

50AB  Extending periods for complying with notices

             (1)  A corporation that has been given a notice under section 50AA may, at any time within 21 days after the notice was given to the corporation, apply in writing to the Commission for an extension of the period for complying with the notice.

             (2)  The Commission may, by written notice given to the corporation, extend the period within which the corporation must comply with the notice.

50AC  Compliance with notices

                   A corporation that is given a notice under section 50AA must comply with it:

                     (a)  within the period of 21 days specified in the notice; or

                     (b)  for a requirement in paragraph 50AA(2)(c)—at the time specified in the notice for that requirement; or

                     (c)  if the period for complying with the notice has been extended under section 50AB—the period as so extended.

50AD  False or misleading information etc.

             (1)  A corporation must not, in compliance or purported compliance with a notice given under section 50AA:

                     (a)  give to the Commission false or misleading information; or

                     (b)  produce to the Commission documents that contain false or misleading information.

             (2)  This section does not apply to:

                     (a)  information that the corporation could not have known was false or misleading; or

                     (b)  the production to the Commission of a document containing false or misleading information if the document is accompanied by a statement of the corporation that the information is false or misleading.

50AE  False or misleading answers

                   An officer of a corporation must not give a false or misleading answer to a question put to the officer in relation to a notice given under section 50AA.

50AF  Disclosure of information etc.

Supply chain impact statement

             (1)  The Commission must publish a supply chain impact statement given to the Commission under paragraph 50AA(2)(a), as soon as practicable, on the Commission’s website.

Other information

             (2)  The Commission must not disclose other information given to the Commission on request under section 50AA except as required by law.

Subdivision CMiscellaneous