ACCC welcomes merger reform bill

The ACCC has expressed its support for the introduction of the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 in the Australian Parliament.

If approved, this bill will equip the ACCC with effective tools to identify and prevent anti-competitive mergers.

“This marks a significant milestone in the process of reforming Australia’s merger laws,” ACCC Chair Gina Cass-Gottlieb said.

If approved by Parliament, the new legislation will bring significant changes for the ACCC, businesses, and the Australian community. In preparation for its implementation, the ACCC released a statement of goals to clarify its approach to the new framework and minimise uncertainty during the transition.

“The ACCC is committed to the successful implementation of these reforms, if passed by parliament, to ensure that transactions that may adversely affect competition are subject to adequate scrutiny based on the risks raised, and to provide a more efficient and transparent process for businesses and for the wider community,” said Cass-Gottlieb.

In contrast to the current situation, only a small proportion of the estimated 1,000 to 1,500 mergers that occur each year are notified to the ACCC, with approximately 93 per cent of voluntarily notified mergers being assessed confidentially.

“Part of making these reforms a success will be ensuring businesses have clarity on their obligations, the timeframes they can expect, and other key aspects of the process,” said Cass-Gottlieb.

“Our statement of goals is the first step in signalling how we will implement these reforms and outlines what merger parties and stakeholders, including customers and suppliers to merger parties, should expect.”

The new system aims to increase transparency regarding the mergers under review by the ACCC and the rationale behind its decisions. This approach will allow the broader community, including consumers and small businesses, to provide input on relevant mergers.

Additionally, the system is designed to create a more efficient and timely process for businesses seeking clearance, with the ACCC having new obligations to complete decisions within specified timeframes.

The ACCC anticipates that approximately 80 per cent of mergers will be cleared within 15 to 20 business days.

As part of the new framework, the ACCC plans to enhance its economic and data analysis to better inform its decision-making process.

“The ACCC will take a risk-based approach, with resources prioritised to acquisitions more likely to harm the community,” said Cass-Gottlieb.

If the legislation is passed, the new regime is set to take effect on 1 January 2026, although merger parties will have the option to begin using the new regime voluntarily starting on 1 July 2025.

The ACCC plans to consult with stakeholders and publish guidelines during the transition period to ensure they are informed about the available options and have channels for seeking guidance.

Additionally, the ACCC has announced plans to renew and expand its Performance Consultative Committee to provide advice on its merger review functions and other responsibilities. The committee will include a diverse group of stakeholders, including representatives from consumer, business, and legal sectors.

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