Public Interest in Antitrust Enforcement: An Australian Perspective

• Published date: 01 June 2020
• Date: 01 June 2020
• DOI: http://doi.org/10.1177/0003603X20912890

Article

Public Interest in Antitrust

Enforcement: An Australian

Perspective

Rod Sims* and Graeme Woodbridge*

Abstract

The Australian Competition and Consumer Commission’s (ACCC) objective in enforcing Australia’s

competition laws is to make markets work in the interests of Australians by protecting and promoting

competition. From the ACCC’s perspective, it is poor public policy to introduce other objectives, such

as reducing income inequality or political influence, into the enforcement of competition laws. If the

enforcement of competition laws tries to achieve everything, in the end, it will achieve nothing.

Moreover, there are other, more targeted instruments that are much better placed to achieve these

other objectives. The ACCC is of the view that business conduct is likely to be anticompetitive if it

interferes with the process of competition and harms trading parties on the other side of the market,

or is likely to do so. The ACCC places great significance on these two issues to develop, test, and

establish theories of harm to competition. While this is the case, the ACCC is of the view that it is not

necessary to precisely quantify the degree of harm to establish that conduct is anticompetitive.

Imposing such a requirement risks under enforcement of competition laws.

Keywords

Antitrust, Australian Competition and Consumer Commission, competit ion laws, consumer laws,

competition policy, consumer welfare standard, enforcement, markets, total welfare standard

I. Introduction

The Australian Competition and Consumer Commission (ACCC) has the responsibility for investigat-

ing and enforcing Australia’s competition (antitrust) laws. The ACCC’s objective in enforcing Aus-

tralia’s competition laws is to make markets work in the interests of Australians by protecting and

promoting competition. This objective has a clear economic foundation. As Adam Smith observed,

market economies require strong competition to work effectively.

1

*Australian Competition and Consumer Commission, Australia

Corresponding Author:

Graeme Woodbridge, Australian Competition and Consumer Commission, Melbourne, 3000, Australia.

Email: graeme.woodbridge@accc.gov.au

1. ADAM SMITH,ANINQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS,BOOK ICHAPTER VII (Edwin Cannan ed.,

Random House, Modern Library ed. 1994) (1776).

The Antitrust Bulletin

2020, Vol. 65(2) 282-296

ªThe Author(s) 2020

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DOI: 10.1177/0003603X20912890

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