Power: Divestiture Powers

power: Harper's competition policy inquiry recommended changes to the misuse of market power provisions in Australian trade practices law, but did not recommend a divestiture power because it was considered unnecessary and undesirable, according to The Guardian. The prominent economist and dean of the Melbourne Business School says in his submission to the inquiry that divestiture powers which are being proposed in the so-called big stick package were avoided in his review because they are unpredictable in their impact and may even be counterproductive if the segregated entities prove to be commercially unviable, potentially leaving the market less competitive after forced divestiture than it was beforehand . Coalition warned its energy 'big stick' could scare away genuine investors Read more He says the powers being proposed in the government's energy policy overhaul are neither necessary nor desirable . Harper says changes to the misuse of market power provisions, which the parliament has now adopted, has given regulators sufficient power to take action if there is anti-competitive behaviour in the energy sector. Harper, who was appointed by the Coalition to review Australia's competition policy and serve on the central bank board, has used a submission to a parliamentary inquiry to warn the Morrison government against pursuing special sanctions for the energy sector. He says competition policy should not discriminate against particular sectors of the economy, and to do so distorts investment decisions, promoting inefficiency and ultimately harming the interests of consumers . Harper says singling out one industry for a particular sanction would create more intrusive regulation imbalances in competition policy. Over-reach is harmful because it is counterproductive it harms competition by penalising pro-competitive conduct, Harper says. He says his competition inquiry rejected calls to single out supermarkets and fuel retailers for special treatment for that reason. (news.financializer.com). As reported in the news.