In: Chapter 5 in Beate Sjå;fjell, Carol Liao and Aikaterini Argyrou (;eds);, Innovating Business for Sustainability:; Regulatory Approaches in the Anthropocene (;Edward Elgar Publishing, 2022);.
BACKGROUND: The public health community has become increasingly critical of the role that powerful corporations play in driving unhealthy diets, one of the leading contributors to the global burden of disease. While a substantial amount of work has examined the political strategies used by dominant processed food manufacturers that undermine public health, less attention has been paid to their use of market strategies to build and consolidate power. In this light, this paper aimed to systematically review and synthesise the market strategies deployed by dominant processed food manufacturers to increase and consolidate their power. METHODS: A systematic review and document analysis of public health, business, legal and media content databases (Scopus, Medline, ABI Inform, Business Source Complete, Thomas Reuters Westlaw, Lexis Advance, Factiva, NewsBank), and grey literature were conducted. Data extracted were analysed thematically using an approach informed by Porter's 'Five Forces' framework. RESULTS: 213 documents met inclusion criteria. The market strategies (n=21) and related practices of dominant processed food manufacturers identified in the documents were categorised into a typological framework consisting of six interconnected strategic objectives: i) reduce intense competition with equivalent sized rivals and maintaining dominance over smaller rivals; ii) raise barriers to market entry by new competitors; iii) counter the threat of market disruptors and drive dietary displacement in favour of their products; iv) increase firm buyer power over suppliers; v) increase firm seller power over retailers and distributors; and vi) leverage informational power asymmetries in relations with consumers. CONCLUSIONS: The typological framework is well-placed to inform general and jurisdiction-specific market strategy analyses of dominant processed food manufacturers, and has the potential to assist in identifying countervailing public policies, such as those related to merger control, unfair trading practices, and ...
BACKGROUND: The detrimental impact of dominant corporations active in health-harming commodity industries is well recognised. However, to date, existing analyses of the ways in which corporations influence health have paid limited attention to corporate market power. Accordingly, the public health implications of concentrated market structures, the use of anti-competitive market strategies, and the ways in which market power mediates the allocation and distribution of resources via market systems, remain relatively unexplored. To address this gap, this paper aimed to identify and explore key literature that could inform a comprehensive framework to examine corporate market power from a public health perspective. The ultra-processed food (UPF) industry was used to provide illustrative examples. METHODS: A scoping review of a diverse range of literature, including Industrial Organization, welfare economics, global political economy and antitrust policy, was conducted to identify important concepts and metrics that could be drawn upon within the field of public health to understand and explore market power. The Structure-Conduct-Performance (SCP) model, a guiding principle of antitrust policy and the regulation of market power, was used as an organising framework. RESULTS: We described each of the components of the traditional SCP model and how they have historically been used to assess market power through examining the interrelations between the structure of industries and markets, the conduct of dominant firms, and the overall ability of markets and firms to efficiently allocate and distribute the scarce resources. CONCLUSION: We argue that the SCP model is well-placed to broaden public health research into the ways in which corporations influence health. In addition, the development of a comprehensive framework based on the key findings of this paper could help the public health community to better engage with a set of policy and regulatory tools that have the potential to curb the concentration of corporate ...
In: In Beate Sjåfjell and Christopher M. Bruner (eds), Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability (Cambridge University Press, 2019), Chapter 29.
The age of the regulatory state has brought many changes to the role of the state, the operation of regulatory agencies and has challenged our way of conceptualising the nature of regulation. Regulators who are subject to the multiple goals of efficiency, clarity and predictability, with efficiency taking increasing significance, are focussed on regulating to improve the integrity of market by correcting market failure. A large amount of the regulating is in the form of self-regulation, carried out by private actors in the market including industry bodies with governments and other stakeholders taking a back seat. Many of these self-regulating structures are far from perfect, leading regulators and communities to doubt the ability of corporations to self regulate. These circumstances, that have challenged many regulators, also provide the opportunity to be innovative. This article has two purposes. The first purpose is to examine the innovative approach of one regulator, the Australian Competition and Consumer Commission (�ACCC�), which has used its discretionary power, of imposing conditions when granting authorisations, to improve industry self regulation. It has been clearly acknowledged by both the ACCC and the Australian Competition Tribunal, which hears appeals on the ACCC�s decisions, that this discretionary power should not be used to construct the ideal or preferred system of self-regulation. However an empirical study of the these determinations over the last ten years demonstrates that ACCC has consistently used conditions for the purpose of enhancing self regulation primarily by improving the manner in which corporations are monitored. Three specific strategies for improved monitoring are evident namely, enhancing the information provided to stakeholders, improving in-house complaints and dispute resolution processes, and mandating external reviews of corporate compliance. It is argued that all these strategies, that challenge traditional views of command and control regulatory strategies, are operating to co-opt others into regulation. The second purpose of this article is to understand the ACCC�s strategies as examples of nodal governance. Nodal governance is defined for the purpose of this article as the establishment of nodes (which possess four specific characteristics namely mentalities, technologies, resources and an institution that is able to mobilise these mentalities, technologies and resources) that are able to interact with other actors in order to govern the systems they inhabit. This type of governance sees the focus shifting from the state as the centre of governing activity, to other institutions or nodes. These nodes which can be private of public organisations include associations which develop codes of conduct; large corporate groups that may wield sufficient influence to change the behaviour of others in the industry; or a well funded activist group that is able to focus attention and hence modify the conduct of others. This article examines the ACCC�s strategies as creating governing nodes. For example by making existing associations responsible for setting up dispute resolution systems, the ACCC is making an existing node responsible for governance. By requiring that these associations involve external auditing processes, the ACCC is creating other nodes to participate in governance by monitoring the conduct of corporate and other organisations.
This book explores the manner in which a variety of public benefits such as environmental protection and consumer safety have been accommodated through the authorisation process within competition law and policy in Australia. While the regulator's use of its discretion can be explained as a triumph of practice over theory, this book explores the potential for competition principles to be imbued by the wider discourses of democratic participation and human rights. In doing so it makes a significant contribution to the Australian competition policy as well as reconceptualising the way in which discretion is used by regulators. ... a very important and creative contribution to the literatures on both business regulation in general and Australian competition and consumer protection law in particular. It pays special attention to an everyday regulatory function that is often ignored in scholarship. And it is very important in challenging--on both empirical and normative policy oriented grounds--a narrowly economic approach to competition law, and proposing an alternative understanding and practice for the public benefit test in ACCC authorisations. Professor Christine Parker The data Vij Nagarajan has analysed is quite unique in its focus. It is a kind of data and analysis that has not been completed before in the international literature. It is well written, theoretically sophisticated and incisive in its policy analysis. John Braithwaite
This book explores the manner in which a variety of public benefits such as environmental protection and consumer safety have been accommodated through the authorisation process within competition law and policy in Australia. While the regulator's use of its discretion can be explained as a triumph of practice over theory, this book explores the potential for competition principles to be imbued by the wider discourses of democratic participation and human rights. In doing so it makes a significant contribution to the Australian competition policy as well as reconceptualising the way in which discretion is used by regulators. … a very important and creative contribution to the literatures on both business regulation in general and Australian competition and consumer protection law in particular. It pays special attention to an everyday regulatory function that is often ignored in scholarship. And it is very important in challenging—on both empirical and normative policy oriented grounds—a narrowly economic approach to competition law, and proposing an alternative understanding and practice for the public benefit test in ACCC authorisations.
Professor Christine Parker
The data Vij Nagarajan has analysed is quite unique in its focus. It is a kind of data and analysis that has not been completed before in the international literature. It is well written, theoretically sophisticated and incisive in its policy analysis.
This book explores the manner in which a variety of public benefits such as environmental protection and consumer safety have been accommodated through the authorisation process within competition law and policy in Australia. While the regulator's use of its discretion can be explained as a triumph of practice over theory, this book explores the potential for competition principles to be imbued by the wider discourses of democratic participation and human rights. In doing so it makes a significant contribution to the Australian competition policy as well as reconceptualising the way in which discretion is used by regulators. … a very important and creative contribution to the literatures on both business regulation in general and Australian competition and consumer protection law in particular. It pays special attention to an everyday regulatory function that is often ignored in scholarship. And it is very important in challenging—on both empirical and normative policy oriented grounds—a narrowly economic approach to competition law, and proposing an alternative understanding and practice for the public benefit test in ACCC authorisations. Professor Christine Parker The data Vij Nagarajan has analysed is quite unique in its focus. It is a kind of data and analysis that has not been completed before in the international literature. It is well written, theoretically sophisticated and incisive in its policy analysis. John Braithwaite