Reply to post: Re: Ignore the man behind the curtain

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W.S.Gosset Silver badge

Re: Ignore the man behind the curtain

The Oz laws are excellent. The problem is the enforcement is shot to shit.

ACCC, primarily. As an example of their AWESOMENESS, they PROVED that there was no abuse of market power in the Aust'n Dairy Industry, and that therefore the farmers were fully protected and had no grounds for action and had to just suck it up and take whatever price the milk-processors told them to take.

They did this by setting up a test whereby the milk-processing oligopsony* would sell precisely the same milk to the supermarket binopsony under two different labels with two different prices. The ACCC howled with triumph when the report came back that the supermarkets had paid a higher price to the processors, and that the processors had captured all of that, passing none of it on to the farmers. Therefore proving that the market was working efficiently. And that there was no imbalance of market/bargaining power between farmers and milk-processors or farmers and supermarkets which needed redressing.

Seriously. They said that.

One of the more mind-scrambling pieces of publicly proudly presented "logic" I've ever come across.


* Monopoly = one entity's control of all supply; Monopsony = one entity's control of all purchases. Oligopoly = small number of entities etc.

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