Allan Fels: Courts should have the power to break up big businesses that behave badly

Australian authorities have never had the power to break up big businesses that behave badly.

It’s a power available to courts in the United States and elsewhere, but not here – at least not unless the Greens succeed with a bill now before the Senate.

The so-called Competition and Consumer Amendment (Divestiture Powers) Bill would enable courts to break up firms that misuse their substantial market power under section 46 of the Competition and Consumer Act.

The Coalition is reported to be examining the same sort of thing, with the breakup powers limited to supermarket chains that abuse their market power.

Section 46 prohibits firms with a substantial degree of power in a market from engaging in conduct that has the purpose, effect, or likely effect of substantially lessening competition in that market.