Outgoing Chair of the Australian Competition and Consumer Commission (ACCC), Rod Sims has used his final address to the National Press Club to call for extensive reforms of Australia’s economy in the wake of the COVID-19 pandemic.
In his last address as Chair of the ACCC, Mr Sims said a reform agenda that included laws against unfair trading practices, new rules for dominant digital platforms, infrastructure reform, as well as changes to privacy and merger laws would improve the prosperity of all Australians.
“Changes to competition and consumer laws would strengthen the economy and underpin consumers’ confidence that a market economy and strong competition worked for them,” Mr Sims said.
“When COVID-19 is under control, I am convinced that early and important movement on these issues and challenges will do much to improve our economic prosperity.”
He said new rules were needed to cover dominant digital platforms to protect consumers and promote competition.
He urged Governments to ensure that infrastructure asset sales did not include conditions that restricted future competition.
Mr Sims also reiterated his call for reforms to the country’s merger laws to tackle anti-competitive abuses of market power.
“In my view, and the view of many others, the Australian economy suffers from high levels of market concentration to the detriment of consumers and productivity,” he said.
“The most important tool to prevent this is our merger laws and they are not up to the task.”
Mr Sims said Australia was facing supply and logistic challenges, which were made worse by the country’s market concentration in so many areas and infrastructure bottlenecks.
He said important changes were also needed to the Australian Consumer Law, including a general safety provision, penalties for unfair contract terms and a law against unfair practices.
Mr Sims, the longest serving Chair of the ACCC, is to finish his current term on 20 March.
