At its second Australian Competition Summit, the Australian Competition and Consumer Commission reviewed the first nine months of the new merger control regime and outlined how it is applying targeted, evidence based regulation as markets change. The regulator is meeting its goal of assessing 80% of acquisitions within 20 business days through early Phase 1 decisions or notification waivers, while gaining greater visibility into serial acquisitions and emerging patterns of consolidation. Four transactions have been resolved in Phase 1 through targeted divestment remedies, including Heidelberg Materials’ acquisition of Maas Group’s construction materials business and Kimberly-Clark’s acquisition of Kenvue. Other cases have required Phase 2 remedies or were not approved where the ACCC found they were likely to substantially lessen competition. The regime has also exposed previously less visible consolidation in veterinary, dental and medical services, motor vehicle dealerships and private equity transactions. Evidence from its operation will inform Treasury’s review of notification thresholds after 12 months and the broader three year review. On enforcement, the ACCC highlighted proceedings against 12 entities in the egg sector, including Sunny Queen, as its first case alleging a concerted practice alongside other alleged anticompetitive conduct. It is also sharpening its focus on resale price maintenance after observing increased conduct across multiple sectors and concluding that recent actions may not have provided sufficient deterrence.
Australian Competition and Consumer Commission reports 80% merger review target met and sharpens resale price maintenance enforcement
The Australian Competition and Consumer Commission is meeting its target to assess 80% of acquisitions within 20 business days under the new merger regime, with four matters resolved in Phase 1 through targeted divestments. The regime is providing greater visibility into serial acquisitions and consolidation across critical services. The regulator is also sharpening enforcement against resale price maintenance and has brought its first case alleging a concerted practice.