Australian car dealers are raising alarms that newly introduced merger oversight rules are capturing small and medium-sized businesses, despite the regulations being designed primarily to scrutinize large-scale acquisitions.
Industry representatives argue that the expanded regulatory net creates an unfair compliance burden for dealerships, which they describe as unintended victims of the policy shift.
The concerns follow the Australian Competition and Consumer Commission’s (ACCC) recent decision to block Coles from expanding its supermarket footprint, a move that signaled a more aggressive enforcement posture under the updated framework.
Dealers warn that similar regulatory hurdles could stifle consolidation and operational efficiency within the automotive retail sector, where many transactions involve relatively small entities.
The ACCC’s stricter approach aims to prevent anti-competitive outcomes in major deals, but the automotive industry contends that the lack of clear thresholds for smaller mergers introduces uncertainty and cost.
This regulatory tension comes as the Australian government continues to refine its competition policy, with recent moves also targeting accounting firms with enhanced policing powers.