Competition laws need to be changed to clamp down on the actions of some big market players in harming the economy and consumers, the small business minister says.
After the release of the Harper review, Bruce Billson is drawing up plans to introduce a so-called effects test, to limit the market power of large companies.
But he's come up against strong opposition from the Business Council of Australia, which argues changes to the "misuse of market power" provision would undermine rather than improve the system.
Mr Billson, who has presented a cabinet paper to his colleagues, said all parties are entitled to put forward their point of view.
"What I'm presenting to the government is what's in the national interest," he told ABC TV on Wednesday.
"That's making sure the environment, the ecosystem within which entrepreneurs and businesses compete, is fair and healthy."
The debate should be about what can be done to stop anti-competitive behaviour, such as excluding new entrants and locking crucial supplies so that no-one else can compete.
"They're detrimental to our economy and damage the consumer interest, but they're outside the reach of the current law," he said.
Mr Billson said he'd be staggered if Coles and Woolworths thought that making sure the marketplace is competitive would somehow lead to price increases.
The former chairman of the Australian Competition and Consumer Commission Professor Allan Fels backed the suggestion, saying it's logical to have in force an effects test.
He said 126 developed countries had the law that Mr Billson wants and the economic logic is impeccable.
Labor says it considered the law change when it was in government and rejected it because it would push up the price of groceries and tie up businesses in frequent court cases.
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