Government Declines Senate’s Call for ACCC Investigation into E-Conveyancing Monopoly
In a recent development, the Australian Federal Government has declined the Senate Economics References Committee’s call to have the Australian Competition and Consumer Commission (ACCC) investigate the e-conveyancing market. This decision effectively means that there will be no formal examination of the monopoly practices of Property Exchange Australia (PEXA).
The Inquiry into E-Conveyancing
In the latter part of the previous year, the Senate undertook a brief inquiry into potential micro-competition opportunities in the realm of e-conveyancing. This inquiry aimed to identify areas where competition could be introduced and fostered within the electronic conveyancing or e-conveyancing space.
Government Support for the Status Quo
The government’s response, published last Friday, clearly indicates support for the status quo. They have pointed out that the primary responsibility for regulating e-conveyancing falls under the purview of the states and territories. The government also highlighted that significant work is already in progress to address competition and interoperability issues in e-conveyancing.
ARNECC’s Role in Regulating E-Conveyancing
The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) has recently concluded and published the reports for two of its three strategic reviews on interoperability. ARNECC is also in the process of finalising its third review, which is focused on the e-conveyancing regulatory framework. The Commonwealth regulators relevant to this sector are actively contributing to this work.
NSW Select Committee Inquiry into E-Conveyancing
In related news, a NSW Select Committee inquiry into competition reforms in e-conveyancing is currently underway. This inquiry is scrutinising many of the same issues that were raised in the Senate’s inquiry.
Government’s Stand on ACCC Investigation
By collectively examining these and other related processes, key competition and market structure concerns in the sector have been identified and explored. These processes have provided a well-developed and detailed evidence base of where the major frictions in the sector arise. However, considering the extensive work already underway and completed, the government does not see the need for directing the ACCC to undertake an inquiry at this time. They believe it would not significantly advance understanding of the issues or deliver additional practical benefits.
In conclusion, while there have been calls for a more thorough investigation into e-conveyancing practices, the government has opted to support the current processes in place. The continued work by ARNECC and the ongoing NSW Select Committee inquiry are seen as sufficient in addressing the identified issues in the sector.
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