ACCC Faces Challenges in Competition Enforcement

The ACCC is committed to enforcing competition laws, but recent data suggests a slowdown in litigation and enforcement actions. Over the past three years, the number of cases pursued has decreased, raising concerns about resource allocation and shifting priorities. While some specialists see an increase in competition investigations, others worry that attention is being diverted to politically sensitive topics like supermarket pricing.

The ACCC, responsible for ensuring fair competition in Australia, has undergone leadership transitions and changes in operational focus. It launched a major case against a global payment firm in 2022, but much of the groundwork had already been done by its previous leadership. The regulator is now preparing to release a report on supermarket pricing, which has already prompted legal action against major grocery chains over alleged misleading discounts.

Recent figures show that competition-related enforcement actions have decreased, although their proportion of total cases has risen. Over the past decade, the regulator has averaged 50 enforcement actions per year, with competition matters making up 14% of cases. Under current leadership, overall enforcement actions have dropped to 30 per year, but competition cases now account for 22%. Similar trends can be seen in litigation, with competition cases rising to 25% of total legal actions despite an overall decline in the number of cases pursued.

Looking ahead, the ACCC is expected to file a significant competition case against a global technology firm, sparking debates about the timing and priorities of its enforcement strategy. At the same time, the agency continues lobbying for stronger competition laws, but meaningful reform depends on effective implementation. With increasing demands on its resources, the ACCC’s ability to maintain a strong enforcement presence remains uncertain.

Source: The Australian, GT Law, Bal Layers