Courts could order big companies to sell off parts
Greens Senator Nick McKim wants courts to be able to make a giant company sell off parts of its business if it has misused its power in a market. The Senate voted the bill down in 2024, but it is back on the Senate's list.
Official name: Competition and Consumer Amendment (Divestiture Powers) Bill 2024
- Courts could order a powerful company that broke fair trading law to cut its share of the market within 2 years.
- That could mean forcing it to sell things it owns. This is called divestiture.
- Only the competition watchdog could ask for an order, within 3 years of the law being broken.
- The Senate voted against the bill in June 2024. It was put back on the Senate's list in August 2025.
Who it affects
- Very large companies with strong market power: If found to have misused that power, they could be ordered to sell things they own or shrink their share of the market.
- The competition watchdog: It would get a new thing to ask a court for when a big company misuses its market power.
- Smaller rivals and shoppers: The bill aims to cut the power of companies that broke the rule, which could open up room for rivals.
Courts cannot break up giants
Australia's Competition and Consumer Act 2010 is the main law on fair trading. It sets the rules on how businesses compete. Section 46 bans misuse of market power.
Market power is when a company is so big in a market that it does not have to worry much about rivals. A company like that must not act in a way that greatly cuts competition, or is meant to.
The competition watchdog makes companies follow these rules. Its full name is the Australian Competition and Consumer Commission. It can take companies to court. Courts can already order fines and other punishments.
Senator Nick McKim brought in this private bill. A private bill is one brought by a member of Parliament who is not a minister. He wants courts to have one more tool. That is the power to break up or shrink a company that has broken section 46.
Power to shrink a company
The bill adds a new section 80AD to the law. It applies once a court has found that a company with strong market power has broken section 46.
The watchdog could then ask the court to give orders to cut the company's power in that market, or its share of it. The company would have up to 2 years from the order to carry them out.
The senator's notes on the bill say the power is wide. A court could order a company to sell things it owns. It could also order any other steps needed to cut its market power. Selling off parts of a business like this is called divestiture.
Say a company that controls most of a market is found to have used that power to squeeze out smaller rivals. The court could order it to sell some of its stores or brands to other owners.
Time limits and other options
The watchdog would have to ask within 3 years of the date the law was broken.
If everyone in the case agrees, the court could make an agreed order. That is an order all sides sign up to. This could happen even if the court has not found that section 46 was broken.
The court could also accept a formal promise from the company to take its own steps to cut its market power. The court can add conditions to that promise. This is called an undertaking.
The new section does not limit any of the court's other powers under the law.
Waiting in the Senate
If passed, the law would start the day after the Governor-General signs it. The Governor-General is the King's stand-in in Australia.
Senator McKim brought the bill to the Senate on 20 March 2024. The Senate is the second house of Parliament, which checks bills. Senators debated it in March and June 2024.
On 26 June 2024 the Senate voted against the main idea of the bill.
On 27 August 2025, in the new Parliament, the bill was put back on the Senate's list of business. No more debate is listed. To become law, it would need to pass both the Senate and the House of Representatives.
Its journey through Parliament
| 20 Mar 2024 | Senate: Introduced and read a first time |
| 20 Mar 2024 | Senate: Second reading moved |
| 27 Mar 2024 | Senate: Second reading debate |
| 26 Jun 2024 | Senate: Second reading debate |
| 26 Jun 2024 | Senate: Second reading negatived |
| 27 Aug 2025 | Senate: Restored to Notice Paper |