The Nationals’ Senator for Queensland, Senator Barnaby Joyce, is currently hitting the roads of Western Queensland with his family. Senator Joyce is getting across many issues which face his fellow Western Queenslanders.
Fresh in Senator Joyce’s mind also, are the many challenges that small businesses encounter in their day-to-day activities when running a small business. Central to these challenges is being able to fight off anti-competitive behaviour by big business. Predatory pricing by big businesses aimed at driving out their small business competitors is a constant threat and current laws are not working to stop this destructive behaviour by big business towards small business.
Senator Joyce has been a strong advocate for changes to section 46 of the Trade Practices Act, to stop predatory pricing by big business. While proposals to amend s 46 are on the table, Senator Joyce said proposed changes to the predatory pricing laws do not go far enough. He is particularly concerned that expert advice has questioned the effectiveness of the proposals currently on the table.
To ensure that predatory pricing is properly dealt with under the Trade Practices Act, Senator Joyce will be moving his own amendments to put at an end to this practice. Senator Joyce’s amendments will state that:
“A company that has substantial market share or substantial financial power must not supply or offer to supply goods or services for a sustained period at a price that is less than the relevant cost to the company of supplying such goods or services for the purpose of:
(a) eliminating or substantially damaging a competitor of the company in that or any other market;
(b) preventing the entry of a person into that or any other market;

or

(c) deterring or preventing a person from engaging in competitive conduct in that or any other market.”
Senator Joyce’s amendments would outlaw below cost pricing over a prolonged period where that is done by big business with the intention of driving out small businesses. This will clearly define predatory pricing and send a clear signal to big business that this anti-competitive behaviour is not acceptable.