sec.18BMeaning of effective competition

sec.18B Meaning of effective competition

For the purposes of this Division, the AER must, in assessing whether there is effective competition within a monitored market, have regard to— whether there are active competitors in the market and whether those competitors hold a reasonably sustainable position in the market (or whether there is merely the threat of competition in the market); and whether prices are determined on a long term basis by underlying costs rather than the existence of market power, even though a particular competitor may hold a substantial degree of market power from time to time; and whether barriers to entry into the market are sufficiently low so that a substantial degree of market power may only be held by a particular competitor on a temporary basis; and whether there is independent rivalry in all dimensions of the price, product or service offered in the market; and any other matters that the AER considers relevant. s 18B ins 2016 No. 56 (SA) s 6 amd 2024 No. 12 (SA) s 7

• (a) whether there are active competitors in the market and whether those competitors hold a reasonably sustainable position in the market (or whether there is merely the threat of competition in the market); and
• (b) whether prices are determined on a long term basis by underlying costs rather than the existence of market power, even though a particular competitor may hold a substantial degree of market power from time to time; and
• (c) whether barriers to entry into the market are sufficiently low so that a substantial degree of market power may only be held by a particular competitor on a temporary basis; and
• (d) whether there is independent rivalry in all dimensions of the price, product or service offered in the market; and
• (e) any other matters that the AER considers relevant.