4167 (2026). Arena Williams to the Minister of Commerce and Consumer Affairs

Written Question

Published date: 27 Feb 2026

Metadata

Document type:	Written Question
Parliament number:	54
Question number:	4167 (2026)
Question asked:	12 Feb 2026
Member asking:	Arena Williams
Portfolio:	Minister of Commerce and Consumer Affairs
Minister replying:	Hon Scott Simpson
Answer received:	22 Feb 2026
Status:	Question Answered
Reply type:	Reply
Document ID:	WQ_04167_2026
Document guid:	6399a4bf-cf6d-4502-891d-f86650370433

4167 (2026). Arena Williams to the Minister of Commerce and Consumer Affairs: In the Commerce (Promoting Competition and Other Matters) Amendment Bill, in the new section 36C about predatory pricing, what is the intended meaning, if any, of “pricing below cost”?

Hon Scott Simpson: The intended meaning is the cost benchmarks set out in proposed section  36C(3). Pricing is “below cost” when a firm prices below Average Variable Cost (AVC) or Average Avoidable Cost (AAC), or (where the conduct has an exclusionary purpose) below Long Run Average Incremental Cost (LRAIC) or Average Total Cost (ATC).