Clare
CURRAN
Communications and IT Spokesperson
30 October 2012 MEDIA STATEMENT
Should ComCom have more teeth?
Consumers could be the big losers after the Commerce Commission rubber-stamped Vodafone’s purchase of Telstra Clear,
says Clare Curran.
“The Commission’s approval of the deal leaves just two major players in the market – and that could result in higher
prices for consumers down the track. The approval is further confirmation that issues of market competition aren’t
getting the level of scrutiny they deserve.
“This decision clearly reduces competition in the telecommunications sector. It leaves consumers with fewer options, and
makes them more vulnerable to anti-competitive behaviour.
“Who’s going to monitor that? And if it’s found to be occurring will it be properly addressed? Court cases resulting
from price-fixing and duopolistic behaviour take years to resolve and in the meantime the consumer suffers.
Commerce Commission Chair Mark Berry gave a strong signal to the Commerce Select Committee last week that a wider review
of competition law was needed. Submitting on a rewrite of cartels legislation he said; “in our view some work remains to
be done. In particular, section 36 of the Commerce Act 1986 continues to be problematic to enforce and would benefit
from reform.”
“The Government should listen to the Commission’s warnings. There have been numerous court cases over whether a dominant
player has wrongly used its market strength that have ended inconclusively because of shortcomings of the Commerce Act.
“The telco sector is fast changing and relies on innovation and affordable pricing for consumers. Today’s decision shows
that our competition watchdog is struggling to keep pace with the realities of the 21st century.
“Reacting to anti-competitive behaviour is one thing. But surely preventing it occurring in the first place is the most
important thing.
“Strong competition law is essential for the economy to flourish. The time may have come for a good look at our laws to
see if they are still up to the job,” says Clare Curran.