When a competition notice is issued to a carrier it forces the recipient to cease the conduct outlined in the notice or face the prospect of court proceedings. A recipient of a competition notice who is found to continue the anti-competitive behaviour after receiving it faces penalties of up to AU$10 million for each offence or AU$1 million for each day the carrier is determined to be in breach of competition regulation. Individuals can face a fine of up to AU$500,000.
The draft guidelines were issued under rules introduced in the Telecommunications Legislation Amendment Act 1999, which was made by the Federal Government to "address concerns that the competition notice regime was not providing the expeditious mechanism for addressing anti-competitive conduct in telecommunications markets that was envisaged", according to the draft guidelines.
"Competition notices are an important mechanism as they allow the ACCC to take timely action in responding to alleged anti-competitive behaviour in telecommunications markets," said ACCC Chairman, Graeme Samuel. "This is very important as anti-competitive conduct in telecommunications markets has the potential to cause rapid and permanent damage to competition in these markets."
"Given the significant consequences of being issued with a competition notice, the ACCC feels it is important to provide clear guidance to the telecommunications industry on the factors the ACCC considers when determining whether a competition notice should be issued," said Samuel.
The draft regulations can be found here: PDF.
