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40 U.N.S.W.L.J. 1035 (2017)
Regulating Supermarkets: The Competition for Space

handle is hein.journals/swales40 and id is 1055 raw text is: 

Regulating Supermarkets


                    REGULATING SUPERMARKETS:
                    THE COMPETITION FOR SPACE




  CHRISTOPHER ARUP,* CARON BEATON-WELLS** AND JO PAUL-TAYLOR***



                                I  THE STUDY

    The  purpose  of this article is to evaluate the case for a proposed competition
policy law  reform. If implemented,  the reform would  roll back land-use  planning
regulation,  so that supermarket   businesses  have   greater freedom   to regulate
privately where   and  with  what  format  they  site their stores.1 With  planning
regulation reduced,  the check on  this greater freedom to site will be competition
regulation;  this regulation  should   also be  light  touch.  Competition   policy
continues  to insist that we shall be better off if public regulation defers to the
market  and private regulation.
    In Australia,  such  a reform  has  considerable  impetus  and  must  be  taken
seriously.  In  March   2015,   the  Government's Competition Policy Review
('Harper   Review'   or  'Review')   recommended that planning regulation be
reduced.  The  Review  takes  the view  that, '[p]lanning and zoning  requirements
can  restrict competition by  creating unnecessary  barriers to entry'.2 To counter
these  restrictions, the  Review picks up on a line of recommendations
running  through  Australian  Competition  and  Consumer   Commission ('ACCC')
and  Productivity  Commission ('PC') enquiries.3 The Review recommends that
planning   regulation defer  to  competition  in  the marketplace.   It insists that
competition  between   individual  businesses  and the  impact  on the  viability of

*    Adjunct Professor, Department of Business Law and Taxation, Monash University.
**   Professor, Melbourne Law School, University of Melbourne.
***  Research Fellow, Melbourne Law School, University of Melbourne.
     This study of siting regulation forms part of a project funded by an Australian Research Council
     Discovery Grant DP150100504 from 2015-18 entitled 'Regulating Australia's Retail Grocery Sector-
     Goals, Actors and Techniques'. Thanks to our colleagues, Jane Dixon and David Merrett, for their
     guidance.
1 For   the definition of 'siting' used in this study, see below n 50.
2    Jan Harper et al, 'Competition Policy Review' (Final Report, Competition Policy Review, 31 March
     2015) 130 ('Harper Review Final Report').
3 Ibid  122-4. See Australian Competition and Consumer Commission, 'Report of the ACCC Inquiry into
     the Competitiveness of Retail Prices for Standard Groceries' (July 2008) ('Competitiveness ofRetail
     Prices Report'); Productivity Commission, 'Relative Costs of Doing Business in Australia: Retail Trade'
     (Research Report, September 2014) ch 6; Productivity Commission, 'Performance Benchmarking of
     Australian Business Regulation: Planning, Zoning and Development Assessments' (Research Report,
     April 2011).


2017


1035

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