Consultation on the telecommunications anti-competitive conduct laws

The Government is seeking comments from interested stakeholders on the ongoing operation of the telecommunications-specific anti-competitive conduct laws in Part XIB of the Competition and Consumer Act 2010.

We need your feedback on whether the Part XIB provisions need to be amended in light of the Government’s proposed changes to the general competition laws.

Today, the Treasurer released an exposure draft bill proposing changes to the misuse of market power in section 46 of the Competition and Consumer Act. The amendments prohibit corporations with substantial market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition. Section 46 applies to all corporations, including carriers and carriage service providers.

Section 46 interacts with, and has similarities to, the telecommunications-specific anti-competitive conduct laws in Part XIB. Under Part XIB, a carrier or carriage service provider engages in anti-competitive conduct if it has a substantial degree of market power in a telecommunications market and takes advantage of that power in any market with the effect or likely effect of lessening competition in a telecommunications market or engages in conduct that contravenes certain other provisions, including section 46.

Given the interaction between section 46 and Part XIB, there is a need to consider the ongoing operation of the telecommunications-specific anti-competitive conduct laws.

Background information:    

• Competition and Consumer Act 2010
• Government’s announcement on section 46
• Harper Review report, pp. 335-348