The Australian Competition and Consumer Commission (ACCC) has released draft guidelines for assessing mergers, inviting public feedback as part of the transition to the country’s updated merger control framework.
The proposed guidelines outline the ACCC’s approach to evaluating notified transactions under the new regulatory system, reflecting established competition law principles.
While the updated rules will not become mandatory until Jan. 1, 2026, the draft provides early insight into how the regulator intends to assess mergers and acquisitions.
ACCC commissioner Philip Williams said the guidelines aim to provide clarity to businesses, legal advisers, and the public on how the ACCC will apply competition law to mergers under the new system.
“This, combined with the increased transparency that will be available for all decisions and the reasons for the decisions, will provide greater predictability regarding the ACCC’s analysis and decision making,” he said.
The legal test for assessing mergers, which focuses on whether a transaction leads to a “substantial lessening of competition,” remains unchanged. However, Williams said the legislation now clarifies that this includes instances where a merger creates, strengthens, or entrenches a significant level of market power.
The ACCC will also consider the cumulative impact of multiple acquisitions made over a three-year period when determining whether a merger is likely to harm competition.
The draft guidelines will be revised following the consultation process and finalised before voluntary notifications begin on July 1, 2025. The ACCC anticipates that further updates will be made over time, particularly as new legal decisions are issued by the Australian Competition Tribunal.
The ACCC is seeking input from businesses, legal and financial professionals, consumers, and other interested parties.
The draft guidelines can be accessed via the ACCC’s consultation hub, where details on how to submit feedback are also available.
The consultation period is open from March 20 to April 17.
The Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024, passed by Parliament on Dec. 10, 2024, introduced a new framework for merger control in Australia. The ACCC has welcomed the changes, stating that they will strengthen oversight of transactions that may impact competition.
Under the new regime, mergers that exceed a specified financial threshold must be notified to the ACCC.
To support businesses during the transition, the ACCC released a Statement of Goals in October 2024, outlining its approach to implementing the reforms. The regulator committed to publishing both merger assessment and process guidelines for consultation by the end of the first quarter of 2025.
The new guidelines will replace the existing 2008 Merger Guidelines, incorporating legislative updates and aligning the ACCC’s approach with current best practices in competition regulation.
The ACCC has also published transition guidance to assist businesses in preparing for the regulatory changes. Additional merger process guidelines are expected to be released by the end of March 2025.
A key aspect of the updated framework is the focus on “serial acquisitions,” where multiple smaller transactions collectively impact market competition. The ACCC has emphasised that such patterns of acquisition will be a consideration in future merger assessments.
