Australia’s big four banks are among the major businesses that could be affected by proposed legislation aimed at preventing the misuse of market power.
Treasurer Scott Morrison today announced the proposed modification of consumer laws aimed at benefiting customers and smaller businesses.
Under the proposed legislation, the Australian Competition and Consumer Commission (ACCC) would no longer have to prove a company is taking advantage of its market position, instead having to simply demonstrate that companies have the effect of reducing competition.
The changes would combat the potential practice of banks colluding on interest rates.
Price-gauging by petrol and supermarket chains will also be targeted.
The bill is expected to reach parliament later this year.
Any company who breaks the proposed laws would face criminal prosecution and a minimum fine of $10 million.