The bill: amends the Competition and Consumer Act 2010 to require the Australian Competition and Consumer Commission to continue its price monitoring of domestic air passenger transport services and related goods and services for 3 years; and repeals the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020 .
The bill should be supported because it aims to enhance competition in Australia's domestic airline industry, which is currently dominated by two major carriers. Increased monitoring by the ACCC can help identify anti-competitive behaviors and provide transparency, ultimately leading to fairer pricing and improved service quality for consumers. By requiring reports at least quarterly, the bill ensures ongoing oversight and accountability, which can encourage smaller carriers to grow and compete more effectively, benefiting the overall market dynamics and consumer choices [Judgment].
The bill should be opposed because continuous monitoring could impose additional regulatory burdens on airlines, potentially increasing operational costs that may be passed on to consumers through higher fares [Judgment]. Additionally, the focus on monitoring may not address the root causes of limited competition, such as barriers to entry for new airlines. Instead of monitoring, efforts could be directed towards policies that directly encourage new entrants or innovation in the sector [Judgment].
2023-09-12
Before Senate
SMITH, Sen Dean; MCKENZIE, Sen Bridget
Unspecified
Competiton Policy, Consumer Protection, Competition Policy, Transport