A report of the Australian Competition and Consumer Commission’s activities

62.Multi-sector engagement

The ACCC and AER annual Regulatory Conference, held in Brisbane on 6-7 August, was attended by more than 400 delegates. The conference draws together international and local experts to discuss current and emerging issues affecting all regulated infrastructure sectors. Under the broad theme of ‘Better regulatory outcomes; less regulatory burden’, sessions included:

Implications of the significant technological changes occurring in the operating environment of electricity network businesses

The trade-off between regulatory flexibility and certainty

The use of benchmarking in regulatory determinations

Net neutrality and lessons from the US experience

Consumer engagement and negotiated outcomes in the UK water sector, and

Extending Australia’s competition law to government activity in trade or commerce.

The 2016 Regulatory Conference will be held at the Brisbane Sofitel Hotel on 4-5 August.

63.Market studies and research

The inquiry into the East Coast Gas Markets was announced by the Government on 13 April 2015 and the ACCC is due to report its findings to the relevant Minister in April 2016. The Terms of Reference for the Inquiry are matters relevant to:

the competitiveness of, access to, and any restrictions on market structures for gas production, gas processing and gas transportation

the significance of barriers to entry into the upstream production sector

the existence of or potential for anti-competitive behaviour and the impact of such behaviour on purchasers of gas, and

During the December quarter the ACCC concluded industry wide public and private hearings with gas market participants (large gas users, gas retailers and shippers, small and large gas producers, pipeline owners,. as well as a range of interested parties (industry peak bodies and independent experts).

On 4 December 2015 Chairman Rod Sims provided advice to Energy and Resources Ministers as part of the COAG Energy Council Meeting on preliminary findings from the gas inquiry.

On 20 October 2015 the ACCC released its 2013-14 Report on the private health insurance (PHI) industry. The report had a particular focus on information provided to consumers by the industry including the transparency, accuracy and consistency of information about policies and the impact this has on consumers' decision-making. In line with the ACCC’s focus on the health and medical sector, the ACCC will be reviewing some practices in the health insurance industry to address concerns regarding incomplete policy information.

Since the release of the research into the Australian debt collection industry report in May 2015 the ACCC has undertaken a range of engagement activities with various stakeholders, including debt collectors, telecommunication and energy businesses, law firms, councils, owners’ corporations and independent schools. The report is available at https://www.accc.gov.au/publications/research-into-the-australian-debt-collection-industry.

The purpose of these activities has been to raise awareness of the report’s key findings and highlight obligations on the industry arising under the ACL, when collecting or selling debts.

ACCC staff delivered presentations to various businesses and sent targeted messages regarding the report to particular industry sectors. Highlights include an ACCC staff presentation to approximately 120 businesses at the Kessler Receivables Management Forum in August 2015.

64.Advocacy and legislative and legal developments

Australian Consumer Law Review

The ACCC continued preparations for the 2016 ACL Review (the Review) in conjunction with Commonwealth, State and Territory counterparts. The Review will consider the effectiveness of the ACL including its impact on protections for consumers, streamlining of regulatory requirements for businesses and the effectiveness of the collaborative enforcement model.

Throughout October and November, the ACCC and other ACL regulators assisted in the development of the second Australian Consumer Survey. The consumer portion of the second national Australian Consumer Survey commenced this quarter, with the business portion of the survey commencing in 2016. For more information about the survey see www.consumerlaw.gov.au

Competition Policy Review

On 24 November 2015 the Government released its response to the Competition Policy Review’s final report. The report made 56 recommendations for reforms to competition law and policy as well as the institutions that promote competition, including the ACCC.

The Government will implement the majority of recommendations, supporting 39 of the Review’s recommendations in full (or in principle) and 5 in part. The Government is open to the remaining 12 recommendations following further review and public consultation. For more information about the Review and the Government’s response see http://competitionpolicyreview.gov.au/.

Section 46 – misuse of market power

On 11 December 2015 the Treasurer released a discussion paper for public consultation outlining various options to reform section 46 of the CCA. The closing date for submissions is 12 February 2016. For more information see http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/Options-to-strengthen-the-misuse-of-market-power-law.

The ACCC is preparing a submission responding to the discussion paper.

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