Scholars Challenge Conclusions of ACCC Digital Platforms Inquiry
PORTLAND, Ore. - September 13, 2019 - ( Newswire.com )
In a submission to the Australian Treasury on Sept. 12, 2019, scholars from the International Center for Law & Economics and other esteemed international scholars critiqued the recently published Final Report of the Australian Competition and Consumer Commission (ACCC) Digital Platforms Inquiry.
In its report, the ACCC claims that competition in the media, communications, advertising and other markets it investigated is “not working,” and that substantial regulatory and legislative changes are necessary to solve — and would solve — the problems caused by ineffective competition.
But the premise that competition is not working is not well supported by evidence presented in the report. Meanwhile, the report’s conclusion misses the bigger picture: Government intervention is appropriate only if it produces net social benefits. Yet the ACCC almost entirely omits consideration of the adverse effects of its proposed interventions, which in many cases are likely worse than the alleged problems. As such, the report’s proposals should be treated with great caution.
The submission tackles three “significant oversights”:
The submission notes in conclusion that “The ACCC’s lackadaisical assessment of regulatory costs is all-the-more troubling given that its report focuses on an extremely dynamic industry. What is only a small regulatory cost today could severely hamper competition in the future.”
For more information on these comments, or to speak to one of our scholars directly, please email firstname.lastname@example.org.
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Original Source: Scholars Challenge Conclusions of ACCC Digital Platforms Inquiry