Describing the increase in big players dominating a particular market as not “purely benign”,the research shows there has been an increase in “quiet mergers” by private companies that have escaped regulatory scrutiny and could be adding to Australia’s lack of competition.
Thefederal government this month launched an inquiry into economic dynamism,competition,non-compete clauses and business creation amid growing evidence that consumers are being hurt by a lack of competitive pressures.
The e61 research,which canvassed changes in market concentration since 2007,found many Australian industries were dominated by four or fewer businesses,at a much higher rate than in the United States.
In areas such as mining,finance,utilities,information,manufacturing and transportation,a handful of firms accounted for more than half of total market share. All the comparable sectors in the US had market concentration by large firms under half of total share.
Over the past 15 years,there had been an increase in the dominance of large Australian firms in their respective markets. Sectors where concentration had sharply increased ranged from radio broadcasting to aquaculture.
The same small number of large firms lifted their market share,killing off potential competitors.