CHANGES to competition laws in Australia will, when implemented, introduce new arrangements to Section 46 of the Competition and Consumer Act 2010.

The new arrangements, which quietly passed through the Senate last week, will prohibit actions which have the effect of being anti-competitive.

Under previous arrangements, proof was required to show that anti-competitive behaviour was deliberate – which was difficult and costly to establish in court.

The new ‘Effects Test’, as it has been referred to, will give the Australian Competition and Consumer Commission additional provisions that will help small business in their interaction with larger entities that may be in a position to manipulate their market power.

While the initial targets will likely be the major national supermarket retailers, the changes could have implications for other segments in the agricultural supply chain where anti-competitive behaviour may be alleged.