Head of the ACCC Raises Concerns About Potential Cryptocurrency Nightmares and Lack of Competition in Australian Air Travel

The head of the nation’s consumer watchdog expressed concerns that President Donald Trump’s proposal to relax cryptocurrency regulations could lead to an increase in investment scams in Australia.

“Any weakening of such regulation is worrying for us,” stated ACCC chair Gina Cass-Gottlieb in an interview with ABC News.

Trump’s pledge to make the United States the “crypto capital of the planet” and encourage wider adoption of digital assets has caused fluctuations in the price of bitcoin, soaring to $US108,000 earlier this year.

The rise and fall of Bitcoin

Trump’s shift from being a crypto cynic to facilitating soaring bitcoin prices through his re-election.

This contrasted with former President Joe Biden’s administration, which took a tough stance by suing numerous crypto companies like Binance and Coinbase for alleged fraud and money laundering. The companies deny these accusations.

Cass-Gottlieb expressed concern over the notion of looser crypto regulations, calling it a “nightmare scenario” due to the advanced global criminal activity and potential regulatory changes.

The ACCC’s latest data revealed over $1.3 billion lost to investment scams in 2023, with most involving cryptocurrency either as a payment method or a scheme for quick profits.

To combat this, the ACCC has prioritized cracking down on scams in the 2025-26 fiscal year.

Competition failure in airline sector

Additionally, the ACCC plans to intensify scrutiny on various industries exacerbating Australia’s cost of living crisis due to insufficient competition.

Rex airlines in administration

Rex’s operational shifts from expansion into metropolitan routes to financial troubles and eventual rescue by Virgin.

The ACCC has received additional funding from the government to investigate inequalities between supermarkets and retailers.

Areas of focus for the ACCC include essential services, cartels, excess surcharges, and hidden fees across various business sizes, citing Webjet as an example.

The ACCC chair will address the enforcement priorities in a speech to the Committee for Econonomic Development of Australia (CEDA).

“Australian customers, whether consumers or businesses, pay the price when markets lack competition,” will be the focal point of the speech, particularly criticizing the aviation sector.

Airfare prices escalate after Rex Airlines’ collapse.

Rex’s voluntary administration came after intense competition with Virgin and Qantas on city routes, resulting in reliance on government aid and focusing solely on regional services.

The struggling airline may be acquired by the federal government if no buyer is secured soon.

“With Rex’s intercity routes, airfares decreased, but following the termination of their city services, prices surged,” reported Ms. Cass-Gottlieb.

A Treasury report reveals that more competition on air routes leads to lower fares, a factor the ACCC will take into account moving forward.

Last year, the ACCC won a case against Qantas resulting in a $100 million penalty for selling tickets to canceled flights in the “ghost flights” scandal.

Supermarkets and greenwashing

ACCC’s recent inquiries into supermarkets, specifically Woolworths, Coles, and Aldi, unveiled tactics used on numerous products, highlighting a lack of competition in the industry.

Investigation of supermarket promotions

Analysis of Coles and Woolworths pricing strategies, revealing high concentration and limited competition.

Consumers facing grocery affordability challenges, including purchasing less food and emotional distress, will be further addressed by the ACCC.

The final report on supermarkets and environmental claims is expected later this year.

Greater scrutiny will be placed on companies engaging in “greenwashing,” such as Clorox, manufacturer of GLAD products.

Clorox is currently facing legal action for claiming its products contain 50% ocean plastic, a matter before the Federal Court.

‘Serial acquirers’ and merger reform

ACCC’s enthusiasm for Australia’s new merger laws set to take effect in 2026, requiring pre-approval from the regulator for mergers above a certain threshold.

Failure to inform the ACCC of a merger could render the transaction invalid, giving the watchdog more power in scrutinizing potential deals.

Qatar Airways’ strategic maneuvering against Qantas

Qantas-Qatar rivalry escalates with competition increase due to airline deal.

Current legislation limits the ACCC’s intervention in stopping mergers that harm consumers until after the fact, allowing some companies to proceed without notifying the regulator.

Previously, companies like Petstock and Qantas engaged in unreported acquisitions, a practice the ACCC aims to address with the new merger laws.

The proposed reforms are crucial for maintaining market competition, as described by Ms. Cass-Gottlieb in an interview with ABC News.

Serial acquirers will face stricter scrutiny and transparency under the new laws, bridging a crucial gap in monitoring merger activities.

Source link

#ACCC #boss #warns #crypto #horror #scenarios #lack #competition #Australian #aviation