Key aspects of the Treasury Laws Amendment Bill 2024 include:
- Streamlined notification processes and timelines.
- Updated definitions of acquisitions.
- Introduction of new competition impact tests focused on substantial public benefits.
- Enhanced procedural safeguards.
Set to come into effect on 1 January 2026—pending parliamentary approval—the reform aims to empower the Australian Competition and Consumer Commission (ACCC) to more effectively manage and evaluate mergers, with the dual goal of protecting consumers and bolstering economic health.
A notable aspect of these changes is the clarification surrounding 'substantial lessening of competition.’ The amendments make it clear that this can occur through the creation, strengthening, or entrenchment of significant market power.
Further consultation on associated regulations is planned for later this year, targeting specifics such as notification thresholds, fees, and the transparency of the ACCC’s public register.
David Jacobson from Bright Corporate Law emphasized in an article that while these changes aim to streamline merger approvals, they also ensure rigorous examination of transactions that may pose considerable risks. He noted, "These reforms balance efficiency with enhanced scrutiny, allowing the ACCC to prioritize genuinely concerning mergers," asserting a more focused approach on safeguarding competitive markets.
For those interested in more detailed insights, Treasury's full exposure draft is accessible, offering a comprehensive view of what to expect from these impending regulations.
