accc loses again.....

ACCC 'disappointed' by Metcash decision
THE consumer watchdog is considering its options after a Federal Court judge dismissed its case against Metcash's bid to take over Franklins.

Australian Competition Consumer Commission (ACCC) chairman Rod Sims said the regulator was disappointed by the decision handed down today.

"The proposed acquisition is likely to result in a substantial lessening of competition through the removal of Metcash's closest and only genuine competitor," he said in a statement today.

This would have a direct effect on the wholesale supply of packaged groceries in NSW, he added.

The ACCC undertook its legal action in December after Metcash said it would go ahead with its $215 million purchase of the Franklins supermarket business from Pick n Pay Stores Ltd of South Africa, despite the commission's objections.

But Justice Arthur Emmett found the Franklins acquisition would not contravene the Competition Act and he dismissed the ACCC's case, ordering it to pay the costs of Metcash and Pick n Pay.

In a statement today, the ACCC said it had not had the opportunity to consider the reasons for judgment.

"It is expected that the reasons will be made public tomorrow afternoon and the ACCC will then closely examine the judgment and consider its options," the statement said.

Mr Sims vowed to continue the fight against "inappropriate market concentration" to protect the long-term interests of consumers.

"The role of the ACCC is to oppose mergers where we believe there will be a substantial lessening of competition in a market in Australia, and this will not change," he said.