Senator Joyce, today, welcomed the passage of the ‘Birdsville Amendment’ to outlaw predatory pricing under the Trade Practices Act.

“This is a historic day for Australian small businesses and consumers as the Birdsville amendments will bring about a new chapter in the assessment of predatory pricing cases in Australia. Australia's new predatory pricing law will be a world leader.

“The Birdsville Amendment to s 46 of the Trade Practices Act will stop a company with a substantial market share from selling or offering to sell goods or services below cost for a sustained period of time for the purpose of:

a) eliminating or substantially damaging a competitor of the corporation or of a body corporate that is related to the corporation in that or any other market; or
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.

“This amendment will stop anti-competitive below cost pricing by large companies aimed at destroying competition. Importantly, the amendment only targets conduct that is clearly detrimental to competition and consumers.

“Below cost pricing for prolonged periods of time aimed at destroying competition has long been recognised as detrimental to consumers. Such conduct is designed to remove vigorous and independent competitors from the market to enable large companies to dominant markets and raise prices.

“For too long such conduct has gone unchallenged as the existing s 46 of the Trade Practices Act has been rendered ineffective by a number of High Court decisions. The Birdsville amendment will change all that for the benefit of small business and consumers.

“The Birdsville amendment will not in any way stop legitimate and pro-competitive discounting. The amendment will only be triggered by below cost pricing where that occurs over an extended period of time for an anti-competitive purpose.

“The Birdsville amendment will not stop pro-competitive discounting. It will not stop any company from matching a competitor’s price. It will not stop Christmas or any other sales. It will not stop clearance sales or specials.

"The Birdsville amendment will restore small business as a cornerstone of the competitive process and ensure that small businesses are not driven out of business by predatory pricing by large companies. This clearly demonstrates the Coalition and National Party’s attention to addressing predatory pricing by the major retailers, the major oil companies and other substantial market players who exert their power in a belligerent and anti-competitive manner at the expense of small business.

"This goal has been tirelessly pursued by the Nationals and supported by so many within the Coalition in order to bring about a better deal for small businesses, not only in Queensland, but across Australia.

"The Birdsville amendment is ground breaking and this will be good for competition, small business and consumers." Senator Joyce said.





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