Competition policy v (industrial) policy: Which should prevail when they conflict?

Rhonda L Smith and Deborah Healey

Competition and Consumer Law Journal

Rhonda L Smith and Deborah Healey, ‘Competition policy v (industrial) policy: Which should prevail when they conflict?’ (2026) 32(2) Competition and Consumer Law Journal 151

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Abstract

Industrial policies, designed to achieve outcomes such as transition to net zero emissions, have become increasingly important in recent years. These policies may be pro-competitive but they may be anticompetitive. The latter creates a policy conflict: which policy should be prioritised? The answer in Europe seems to be industrial policy but there does not seem to be an analytical framework from which this conclusion is derived. This article seeks to provide a rigorous and consistent framework to be used on a case-by-case basis to determine this. It begins with a brief discussion of Australia’s industrial policy, including its most recent significant initiative, the Future Made in Australia policy, as well as the effects of these policies. It provides a brief overview of competitive neutrality policy and regulatory impact assessment as part of competition policy in the context of the potential policy conflict. Finally, it suggests a framework for reconciling the policies and tests this against a recent merger authorisation decision.