Dismantling the competition myth
Ask anyone in Australia’s competition law community what transformed the economy, and you will hear a familiar story.
Ask anyone in Australia’s competition law community what transformed the economy, and you will hear a familiar story.
The Government’s proposal rests on the assumption that there exists a broad global consensus on the need for ex-ante rules for digital platforms.
Imagine a New Zealand where every major company is neatly divided between the North and South Islands.
Only free entry into the retail market would tell us if there is enough supermarket competition in New Zealand.
Competition law has been with us since the Sherman Act (1890).
If you really care about competition, forget about trying to make it happen by law.
If you are concerned about New Zealand’s cost of living, you should think about those regulations that have a limiting effect on supply and competition.
Land regulations are a cost and concern to New Zealand businesses, and they are probably a factor affecting the cost of living through land prices and competition effects.
It is the same mentality that has propelled Aldi to one of the world’s most successful retail chains, one that is driving Germany’s astonishing competitiveness.
Politicians play with the price system at their peril.
© Dr Oliver Hartwich