The Competition and Consumer Amendment (Misuse of Market Power) Bill 2016 or better known as the ‘Effects test’ Bill has reviewed and approved by the Senate Economics Legislation Committee. The committee report has been released recommending that the bill be passed by the House of Representatives and Senate.
This is another important step in what has been a long journey to get the ‘effects test’ into law. The next step will be passing the legislation through both parliamentary houses. QDO has been lobbied for an ‘effects test’ to be introduced and will continue to do so during the crucial next few months.
An ‘effects teat’ is a major component of ensuring the dairy industry can operate in a fairer market that ensures there are not abuses of retailer’s power. If passed the new laws will deliver a balanced playing field where the powers of the supermarkets to dictate the price of products like dairy will be reduced.