War on market thugs says Rudd Government

THE Rudd Government will today announce new measures aimed at promoting competition and cracking down on anti-competitive behaviour by big businesses.

In what appears to be a major coup for the small business sector, the government will announce reforms to the Trade Practices Act that will make big companies more accountable for anti-competitive activities.

Under proposed changes to the TPA, the government will move to especially protect small businesses from predatory pricing.

The reform package to be announced by Assistant Treasurer Chris Bowen and the Minister for Small Business Craig Emerson, will make it easier for the Australian Competition and Consumer Commission to prosecute companies that engage in anti-competitive behavior.

One of the key reforms will reduce the burden of proof on victims initiating litigation over predatory pricing.

Most important, victims will not need to prove that the predator has the ability to recoup losses after participating in so-called "below cost" pricing activity.

The reform package will also clarify key parts of the legislation in response to concerns raised by business and the ACCC.

The government is also seeking to reduce the costs for small businesses accessing the judicial process.

Where appropriate, legal cases involving a misuse of market power will be heard in the Federal Magistrates Court rather than in the Federal Court.

The reforms will also strengthen the role of the ACCC by enabling it to fully investigate suspected breaches of the law by enhancing its information gathering powers.

The government will extend the reach of the ACCC by removing the $10 million arbitrary monetary threshold which currently applies to allegations of unconscionable conduct.

Mr Bowen is also expected to announce changes to the ACCC's structure which will give small business bodies formal representation on the ACCC.

At least one deputy chairperson of the commission will be expected to have small business expertise under the the government's reforms.

Mr Bowen will write to the states and territories seeking their approval for the proposed amendments this.

Herald Sun 28 Apr 2008

Considering it's Big Business (Kerry Packer) who helped make Howard Prime Minister, there is little chance of this naive idea fruiting real results.