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Increasing market concentration has become a topical issue in competition law worldwide. This article explores how firms, especially digital platform businesses, increase market concentration which may facilitate entrenched market power and anti-competitive conduct in their upstream or downstream markets. It considers in an Australian context two specific ways in which the power of a dominant firms including digital platforms may be constrained. The first is allowing the parties with lesser market power to collectively bargain, which can redress the imbalance in bargaining power to make the market work more effectively. A second and related option is the introduction of mandatory codes of conduct, which may be suitable in markets where perennial problems with market power imbalances exist. Australian experience suggests that these options can assist markets to function more effectively, and they may provide additional flexibility for other jurisdictions. [ABSTRACT FROM AUTHOR]

Australia has a long history of privately owned utility price regulation, one that is little known. This price control was designed to restrain the market power of several utilities (gas, rail, tramways, electricity, and water). The purpose of this paper, therefore, is to establish what types of price control that were used in Australia in the utilities sector before the First World War and to determine the degree to which this price control influenced efficiency. As price levels in this era were set in legislation, the lack of flexibility led to less-than-optimal outcomes, and eventually and led to new approaches were developed after 1912 to the utilities that remained in private ownership, and in some cases influenced the movement in Australia towards government control. [ABSTRACT FROM AUTHOR]

Issue Addressed: Adolescents are heavily exposed to unhealthy outdoor food advertisements near schools, however, the marketing power of these advertisements among adolescents has not yet been explored. This study aimed to investigate the teen‐directed marketing features present and quantify the overall marketing power of outdoor food advertisements located near schools to explore any differences by content (ie, alcohol, discretionary, core and miscellaneous foods) school type (ie, primary, secondary, K‐12) and area‐level socio‐economic status (SES; ie, low vs high). Methods: This cross‐sectional study audited every outdoor food advertisement (n = 1518) within 500m of 64 randomly selected schools in Perth, Western Australia, using a teen‐informed coding tool to score the marketing power of each advertisement. Results: Outdoor alcohol advertisements around schools had the highest average marketing power score and number of advertising features present. Outdoor advertisements for alcohol and discretionary foods scored significantly higher in marketing power than core food advertisements (P <.001). Outdoor alcohol advertisements around secondary schools scored significantly higher in marketing power than around primary and K‐12 schools (P <.001); and outdoor advertisements for discretionary foods in low SES areas scored significantly higher in marketing power than those in high SES areas (P <.001). Conclusions: This study found outdoor advertisements for unhealthy products, such as alcohol and discretionary foods, were more powerful than advertisements for core foods around schools. So What?: These findings strengthen the need for policies which restrict outdoor advertisements for non‐core foods near schools, to reduce adolescents' exposure to powerful alcohol and discretionary food advertisements. [ABSTRACT FROM AUTHOR]

Research on markups by Hambur (Treasury Working Paper, 2021) shows that markups in Australia have increased since the turn of the century. This is consistent with findings for other advanced economies over the same period. Australia's most digitally intensive firms increased markups the most. Australian industries with the greatest increase in concentration also recorded the greatest increases in markups. This aligns with other economic evidence around declining dynamism. Over recent decades, market concentration has risen, the start‐up rate has dropped, and the share of workers starting a new job has declined. Evidence on markups is consistent with a lack of dynamism in the Australian economy. [ABSTRACT FROM AUTHOR]

This paper documents firm mark‐ups and competition in Australia, and their impact on productivity, using administrative data. I find that mark‐ups increased by around 5 per cent since the mid 2000s, less than previously documented for Australia and slightly less than documented for the average advanced economy. While part appears to reflect technological change, part appears to reflect an increase in market power. This increase appears to explain part of the slowdown in productivity growth observed in Australia over the past decade, by slowing the efficient reallocation of resources from low productivity to high productivity firms. [ABSTRACT FROM AUTHOR]

Background and Methods: Competition regulation has a strong influence on the relative market power of firms. As such, competition regulation can complement industry-specific measures designed to address harms associated with excessive market power in harmful consumer product industries. This study aimed to examine, through a public health lens, assessments and decisions made by competition authorities in four jurisdictions (Australia, South Africa, the United States (US), and the European Union (EU)) involving three harmful consumer product industries (alcoholic beverages, soft drinks, tobacco). We analysed legal case documents, sourced from online public registers and dating back as far as the online records extended, using a narrative approach. Regulatory decisions and harms described by the authorities were inductively coded, focusing on the affected group(s) (e.g., consumers) and the nature of the harms (e.g., price increases) identified., Results: We identified 359 cases published by competition authorities in Australia (n = 202), South Africa (n = 44), the US (n = 27), and the EU (n = 86). Most cases (n = 239) related to mergers and acquisitions (M&As). Competition authorities in Australia, the US, and the EU were found to make many decisions oriented towards increasing the affordability and accessibility of alcohol beverages, soft drinks, and tobacco products. Such decisions were very often made despite the presence of consumption-reduction public health policies. In comparison, South Africa's competition authorities routinely considered broader issues, including 'Black Economic Empowerment' and potential harms to workers., Conclusion: Many of the competition regulatory decisions assessed likely facilitated the concentration of market power in the industries we explored. Nevertheless, there appears to be potential for competition regulatory frameworks to play a more prominent role in promoting and protecting the public's health through tighter regulation of excessive market power in harmful consumer product industries., (© 2024. The Author(s).)

News media businesses compete with search engines and social media networks for advertising revenue but at the same time depend on the latter to reach and interact with audiences. The Digital Platforms Inquiry (DPI) completed by the Australian Competition and Consumer Commission (ACCC) found that media businesses' dependency on digital platforms gives companies like Google and Facebook substantial bargaining power over Australian news media businesses. This development over the past decade has caused negative repercussions for the choice and quality of news available to Australians. In response to thegse findings, Australia's News Media and Digital Platforms Mandatory Bargaining Code 2021 extends the application of competition law into digital news and advertising markets. The reform is intended to address the impact of digital platforms on the commercial viability of Australian news companies. In this article, we assess the application of competition law to the relationship between news media and digital platforms, including the strength of the DPI findings and the appropriateness of the resulting reforms. We argue that after decades of deregulation of the media sector in Australia the News Media Bargaining Code is a hybrid legislation, which introduces news media industry regulations under the guise of competition law. While we see a continued role for competition law in digital platform markets, this article indicates the challenges posed by digital platforms on media pluralism and the limitations of a market-driven approach to news media policy. [ABSTRACT FROM AUTHOR]

This paper explores the rise of philanthropy and the influence corporate partnerships have on the practice of public schooling. We do this by focusing on one public school in Australia and its partnership with one global commercial actor. The paper proceeds by outlining new philanthropy in public schooling and in particular, how commercial organisations are now sponsoring or making donations to local public schools as part of their focus on Corporate Social Responsibility. We then analyse the participation of one commercial actor – McDonald's – in what we are conceptually referring to as the commercial school heterarchy. Our data demonstrates how McDonald's used different kinds of power to market its brand, gain entry into the school and diversify its field of influence from that of 'sponsor' of a sports team to that of a 'business partner'. In our discussion we consider the implications of this partnership for principled positions in public schooling. [ABSTRACT FROM AUTHOR]

In 2017, airport privatisation in Australia reached a 20-year milestone, with its regulatory framework been shifted to a light-handed regulation in 2002. The light-handed regulation (LHR), as in place at Australia's top four airports, has been suggested as the ‘frontier of international policy’, leading to increasing interest among transport policymakers and researchers. This article offers an in-depth examination of the LHR with focus on a) the market-power of the regulated airports, b) the commercial price negotiations between airports and airlines, and c) the airports' behaviour towards infrastructure investment. The article reports on data from 21 semi-structured interviews conducted with key stakeholder groups affected by, or with expertise in, the LHR. Findings suggest that despite airports possessing significant market power, particularly in the domestic market, the light-handed approach seems to balance the forces in a market where an airline duopoly prevails (Qantas and Virgin Australia groups). In addition, both airports and airlines perceive that commercial price negotiations are improving and refrain from a return to a stronger regulation environment. For airlines, value-for-money is the primary concern in new infrastructure investments. Interviewees also outlined specific recommendations for improving the LHR framework, including a more accessible arbitrator and improved methodologies to monitor prices and quality of service. The findings point towards the significance of vertical relationships, long-term arrangements, and transparency as key aspects of the LHR and the development of airport infrastructure. [ABSTRACT FROM AUTHOR]

The article focuses on the proposed competition policy law reform regarding the supermarkets and the public land-use planning regulation restricts. It mentions clearances given by Australian Competition and Consumer Commission (ACCC) gives to the major supermarket chains (MSCs) to acquire sites and its application of the new test for the misuse of market power. It also mentions private regulation finds expression in property and contract law.

The article presents a comparative analysis of the proposed amendment to section 46(1) of the Competition and Consumer Act 2010 (CCA) against several effects-based tests for unilateral anticompetitive conduct. It mentions unilateral anticompetitive conduct and outlines the debate concerning the prohibition of misuse of market power in Australia. It also mentions arguments for and against effects-based tests based on decision theory and error–cost analysis.

A corporation's market power can be derived from numerous sources, and some of these sources attract greater attention than others. At various levels of Australian courts, it has been suggested that excess production capacity can inform the assessment of market power. There is however an equal degree of resistance in certain judgments to recognising that excess capacity has any relevance in competition analysis. The High Court of Australia is yet to unequivocally confirm that excess capacity may be taken into account when assessing the degree of a corporation's market power. A similar tension about the issue exists throughout economic literature in both Australia and abroad. This article suggests that it is possible for market power to be derived from excess capacity, but only when coupled with other factors. [ABSTRACT FROM AUTHOR]

The article critically examines EU-Australia relations through the negotiation of the 1994 and 2008 Agreements between Australia and the European Community on Trade in Wine. EU-Australia relations are often characterised as defined by Australia's focus on the UK and the EU's agricultural policies. This article moves beyond these assumptions and analyses the negotiation of the wine trade agreements through three factors: the pattern of political institutions, power asymmetry and subjective utility of non-agreement alternatives. It argues that perceptions, miscalculations, and misunderstanding have had an impact on how these factors shaped negotiation outcomes. These negotiations are an under-studied case in the development of EU-Australian relations, and are useful in understanding how the perceptions of negotiators shape outcomes in the EU's negotiations with Australia. [ABSTRACT FROM AUTHOR]

Domestic, US and Australian beef, which are differentiated by country of origin, are sold in Korea. In this differentiated product market, tariff reductions through Free Trade Agreements (FTAs) are expected to strengthen the competitiveness of imported beef and, therefore, to mitigate the effects arising from the market power of domestic marketers. The present study develops a simulation model that evaluates this mitigating effect by explicitly reflecting the market structure that domestic beef marketers constitute. The simulation results indicate that the farm-retail marketing margin would decrease by 10.59% or 6.79% due to the Korea–US and Korea–Australia FTAs, respectively, if domestic beef marketers formed a cartel or an oligopoly market (i.e. the degree of market power is 0.5), while the marketing margin under a competitive market scenario is simulated to have no change. The value of beef production would decrease by 1009 million dollars if the marketers form a cartel and hence exercise monopoly power. The FTAs are simulated to reduce the value of beef production by 564 million dollars under the competitive market scenario. [ABSTRACT FROM AUTHOR]

This article discusses the key recommendations of the Final Report of the Competition Policy Review Panel relating to the competition provisions of the Competition and Consumer Act 2010 (Cwlth)-specifically, with regard to substantive rules, recommendations concerning the prohibitions on misuse of market power and cartel prohibitions and, with regard to form, recommendations concerning simplification of the law. It also critiques the Review Panel's failure to articulate a position on the statutory objects of the competition provisions. The article concludes that the recommendations in question should be accepted by government. However, the extent to which they achieve beneficial outcomes in practice will turn on the manner in which the new rules are drafted and the approach taken to their enforcement. [ABSTRACT FROM AUTHOR]

The article focuses on the nature of unilateral anticompetitive conduct and describes a category of profit-focused tests for such conduct with the substantial market power with competition laws. It mentions that prohibition against misuse of market power with the subject of inconsistent and uncertain judicial interpretation for increasing social welfare.

The article discusses several problems which are associated with the use of a "hybrid" test for abuse of market power in New Zealand, and it mentions how New Zealand's Commerce Commission Chairman Dr. Mark Berry claims that Section 36 of the nation's Commerce Act 1986 needs to be amended. It states that the New Zealand Supreme Court has confirmed that a "counterfactual" test is the correct method for establishing whether a party has taken advantage of market power. Australian law is examined.

The article focuses on the impact of substantial market power of Australian corporations on the economic scenario of the market. Topics discussed include the role of substitution options in altering the market situation and consumer preference, impact of the decision on lawsuit of Cement Australia Pty. Ltd. on the market power of corporations, and the role of competition law in defining the market situation.

The article reports on the Compliance and Enforcement Policy being released by the Australian Competition and Consumer Commission (ACCC) as of 2014. Topics discussed include impact of this competition policy on the business, views of the chairperson of the ACCC Rod Sims on the release of this policy and court proceedings and laws made for the regulation of misuse of market power. The laws made for the regulation of supermarkets, fuel and telecommunication industries is also discussed.

This paper focuses on Australian development firms in the console and mobile games industry in order to understand how small firms in a geographically remote and marginal position in the global industry are able to relate to global firms and capture revenue share. This paper shows that, while technological change in the games industry has resulted in the emergence of new industry segments based on transactional rather than relational forms of economic coordination, in which we might therefore expect less asymmetrical power relations, lead firms retain a position of power in the global games entertainment industry relative to remote developers. This has been possible because lead firms in the emerging mobile devices market have developed and sustained bottlenecks in their segment of the industry through platform competition and the development of an intensely competitive ecosystem of developers. Our research shows the critical role of platform competition and bottlenecks in influencing power asymmetries within global markets. [ABSTRACT FROM AUTHOR]

In this paper I present a 'report card' on the current state of Australia's competition laws, focusing on antitrust laws. I consider the three core antitrust provisions in the Australian Competition and Consumer Act (2010) - the laws against cartels, abuse of market power and anticompetitive mergers. In each of these areas, particularly cartels, I find that Australia's laws could be significantly improved. I also consider more innovative reforms to Australia's competition regulations, to improve the transparency of pricing and to reduce customer switching costs. I note that these reforms have been broadly successful. [ABSTRACT FROM AUTHOR]

The article presents information on the legal interpretation and the application of the section 46 of the Competition and Consumer Act 2010 that focuses on distinguishing between the pro-competitive and the anti-competitive conduct of corporations with a substantial market power. It discusses the legitimacy of the business purpose towards the exclusionary conduct and predatory pricing. Information on cases concerning this issue is also presented.

Mergers and acquisitions within the Australian-real estate investment trusts (A-REITs) sector have become a noticeable trend in the last decade. Utilising event study methodology, 36 successful A-REIT mergers and acquisitions between January 1995 and December 2008 were examined. Both target and bidding shareholders experience positive excess returns of 4.27% and 0.54% respectively over the 41 day event window [-20, +20]. Analysis indicates that the cumulative abnormal returns (CARs) for bidding firms are considerably greater than previous research suggests. This study finds higher bidder CARs when scrip or a combination of scrip and cash is used to finance the acquisition. We also find that the relative size or the size of the acquirer have a positive and significant impact on the excess returns of bidding A-REITs. This suggests that the synergistic benefits from the acquisition are a result of economies of scale and increased market power. There is also some evidence that the relative size and method of payment influence the CARs of target firms during the event window. [ABSTRACT FROM AUTHOR]

Australia's national electricity market (NEM) is national in name only. It is eight years since the NEM commenced and the objective of a fully competitive market has not been reached. The NEM's structural characteristics, shaped strongly although not exclusively by its evolving regulatory regime, have created the exact antithesis. This paper examines the NEM's key structural characteristics, the consequential pricing and investment outcomes and the conundrums posed for governments and regulators elucidating the reasons why a fully competitive NEM--beyond an increased number of buyers and sellers, and choice of supplier for all consumers--can not be attained without substantial changes. [ABSTRACT FROM AUTHOR]

The level and nature of competition in supermarket retailing in Australia has been hotly debated as a policy issue in recent times. The creeping acquisitions of smaller groups by Coles and Woolworths have led to several investigations amid claims that consumers will be disadvantaged by the growth of the two big chains. Yet little convincing evidence has been found to support these assertions. Although on occasions the big two may have used their power vertically to squeeze suppliers, consumers have experienced highly competitive retail markets. In this paper, it is argued that it is market conduct, not structure, that should be the prime focus of regulatory and policy interest, and that recent corporate activity may lead to a third force in supermarket retailing in Australia that could not only ensure continued competitiveness in the industry, but could also help to constrain the successful exercise of vertical market power by the two big chains. Accordingly, it is argued that intervention as a general policy in supermarket retailing would not be socially efficient, at least not until a wide range of objective and quantitative assessments have been carried out on the operation of the supermarket sector. [ABSTRACT FROM AUTHOR]

Incentive schemes and policies play an important role in reducing carbon emissions from electricity generation. This paper investigates designing tax and subsidy incentives towards a reliable and low emission electricity market, using Australia's National Electricity Market as a case study. In this work, a novel framework is proposed to design interactive tax/subsidy incentives on both emission reduction and resource adequacy in competitive electricity markets as a game model. In our model, market participants decide on their capacity expansion/retirement strategies considering the impact of designed incentive schemes on their long-term operation such that the desired levels of emission reduction and fast response generation are achieved in the network. The simulation results for Australia's electricity market during 2017–2052, indicate the necessity of incentive policies, in spite of the cost reduction trajectory for renewable technologies, to reach the emission intensity reduction above 45% in the market by 2052. In 80% emission intensity reduction scenario, the designed incentive schemes highly encourage the investment on synchronous renewables, +17 GW, storage technologies, +15.7 GW, and transmission lines, +1.6 GW, to support high additional penetration of Variable Renewable Energy, wind and solar, +39 GW, which paves the way to transition to a green and reliable electricity market. • Our model designs emission abatement and reliability schemes in electricity markets. • The schemes are designed considering the strategic behaviour of market players. • The designed emission policies must be dynamic due to outage of aging generators. • Reliability schemes are taken into account to enable high penetration of renewables. • Emission abatement schemes might lower the average prices at some years. [ABSTRACT FROM AUTHOR]