The Federal Government has ushered in key reforms to the Trade Practices Act to protect smaller businesses from the predatory pricing strategy of larger rivals.

Competition Policy Minister Chris Bowen says the reforms will make it easier “to prosecute businesses engaging in anti-competitive behaviour, give small business permanent representation on the [the Australian Competition and Consumer Commission], and allow small business to access cheaper and more efficient judicial processes”.

Legislation was amended to improve clarity while victims of predatory pricing will no longer need to prove that the predator has the ability to recoup losses after participating in below cost pricing strategy.

The reach of the Federal Magistrates Court is also extended to include cases of anti-competitive conduct to reduce the cost of legal action for small operators.

The changes also mean at least one ACCC Deputy Chairman must have small business experience.

The reforms are expected to benefit smaller players in the insurance industry such as underwriting agencies, which have been critical of major insurers for heavily discounting premiums.