The ACCC is celebrating new merger law reforms.

The Australian Parliament’s approval of the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 has been described by the Australian Competition and Consumer Commission (ACCC) as a transformative moment for the nation’s competition laws. 

Set to take full effect in January 2026, the new framework is designed to enhance transparency, fairness, and efficiency in how mergers and acquisitions are assessed. 

Businesses will also have the option to voluntarily adopt the regime starting in July 2025.  

ACCC chair Gina Cass-Gottlieb says the legislation is the most significant shake-up to Australia’s merger laws “since the Trade Practices Act was enacted 50 years ago”.

She said the changes will curb practices that undermine consumer and business interests.  

The reforms address long-standing gaps in Australia’s merger framework, including the current absence of a requirement for merger parties to notify the ACCC or secure clearance before proceeding. 

Instead, the updated laws will impose a mandatory notification system for transactions exceeding specified thresholds. 

For businesses, this shift is expected to create a more predictable and transparent process while providing the ACCC with new tools to scrutinise the cumulative effects of smaller acquisitions that might otherwise escape attention.  

For the first time, all final merger decisions will be accompanied by published explanations, offering businesses and the broader community insights into the regulator’s decision-making. Other measures include enhanced scrutiny of so-called “serial acquisitions”, often smaller transactions that, when combined, harm competition in key markets.  

The ACCC has also been granted flexibility to focus on high-risk sectors, with provisions allowing the Treasurer to set specific notification thresholds for industries deemed particularly sensitive. 

Meanwhile, a risk-based approach, leveraging advanced economic analysis and data, will underpin the ACCC’s assessments, streamlining reviews for straightforward cases while dedicating more attention to complex ones.  

The ACCC has been advocating for these changes since 2021. 

Looking ahead, the ACCC plans to release draft guidelines in early 2025 to help businesses adapt to the new processes. 

This email address is being protected from spambots. You need JavaScript enabled to view it. CareerSpot News