Inequality and competition law

Rhonda Smith and Arlen Duke

Competition and Consumer Law Journal

Rhonda L Smith and Arlen Duke, ‘Inequality and competition law (2019) 27 Competition and Consumer Law Journal 1

Abstract

This article aims to explain why in the United States competition law objectives are being reconsidered in light of increasing inequality and to suggest reasons why these issues have attracted almost no attention in Australia. It begins by exploring claims that in the United States, adoption of Chicago School thinking has resulted in under-enforcement of competition law. This is claimed to have allowed market power to increase and so prices have increased, wage increases have been stifled and profits have risen — increased inequality has resulted. Australia did not adopt Chicago School economics with the same relish as the Americans and so avoided any consequent under-enforcement of competition law. The reason for this seems to lie at least in part in the form of the Trade Practices Act 1974 (Cth) and in those involved in applying the Act. However, what of the future? Consideration is given to whether technology and structural change explain the heightening and/or creation of barriers to entry and, if so, whether it is in this area that Australian competition law may play a role in reducing inequality whilst avoiding distorting the role of competition law.