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Australia: ACCC Chairman concerned with market concentration

By  |  October 27, 2016

Rod Sims, the chairman of the Australian Competition and Consumer Commission, said in a speech on Thursday that the revenue of the largest 100 companies on Australia’s stock exchange had increased from just 27% of gross domestic product in 1993 to 47% in 2015.

The rise of corporations in Australia over the past two decades has been so great that it has outstripped the growth of large companies in the US, Sims said, where their revenue had increased from 33% of GDP to 46% in the past 23 years.

To clarify that he is merely cautious and not against mergers, Sims also stated “there will be times when a merger to high concentration is acceptable, due perhaps to low entry barriers, but logic says it will not be the norm. Why shouldn’t those arguing the unconventional have the burden of producing evidence to support their position?”

Full Content: The Guardian

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