ACCC Chairman Rod Sims has warned Aussie business that his competition watchdog won’t protect them from competition, as they face the prospect of the arrival of Amazon in Australia.

He was speaking on recent changes to the Competition and Consumer Act 2010 (CCA), especially the revised s46, by which firms with a substantial degree of market power are prohibited from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition (SLC) in a market.

“Amazon’s entry into Australia will be good for consumers, despite it not being good for some incumbent retailers, who have even called for ACCC intervention to act against Amazon’s business model.” Sims said.

“Protecting the competitive process is about ensuring (that) winners and losers are determined by the quality of the offers firms make to consumers, so firms that offer consumers a better deal should be rewarded irrespective of their size. To some this may seem unfair. But it is this process that drives innovation, better business practices and lower prices for all Australians.”

To accompany the changes, the ACCC has released interim guidelines and formed a special unit to investigate claims of substantial lessening of competition.

No wonder big retailers and department stores are bracing themselves!