In 2008, Bendigo Bank and Adelaide Bank merged, and the Commonwealth Bank took over Bankwest. The big four banks — ANZ, NAB, Westpac and Commonwealth Bank — cannot merge with each other because it would hurt competition too much.
FIGURE6 Australia’s four big banks are prohibited from merging because this would severely reduce competition in the banking industry.
16.7.3
The role of the Australian Competition and Consumer
Commission (ACCC)
The ACCC can investigate businesses for breaching the Competition and Consumer Act. They can take legal action against anyone suspected of wrongdoing. Sometimes, they can get a court order to take documents from businesses that might be acting unfairly. Only a court can decide if a law has been broken and can punish offenders. The ACCC helps bring cases to court to impose penalties and to help those harmed by the breach. Companies can be ýned up to $10 million, while individuals can be ýned $500 000. The ACCC can also allow certain actions that seem unfair if they beneýt the public. They monitor prices and approve price increases in markets with limited competition. The ACCC focuses on helping businesses follow the law rather than just punishing them.
FIGURE7 ACCC ofýcials may seize documents from businesses suspected of anti-competitive behaviour.
TOPIC16 How markets work 575
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