ACCC hits back at Telstra
Australian Competition and Consumer Commission chairman Rod Sims has described Telstra’s push to remove price signalling rules as disappointing.
Price signalling involves companies releasing information on pricing to reduce competition in the market. Australia’s big four banks were accused of it when they told the market about plans to pass on interest rates, until fresh laws were passed in 2012 to stop the practice.
Telstra called for a complete removal of all price signalling laws in its submission to the Harper review, which is a "root and branch" inquiry into competition policy. It was a call echoed by other bodies such as the Australian Recording Industry Association (ARIA).
"Price signalling provisions … represent an attempt to address a perceived gap (not universally recognised) in the ability of the law to deal with tacit collusion," it said. "There was a significant risk of regulatory overreach [and] it is arguable that is what has occurred. Sydney Morning Herald – Read more…