Meta v Government

👋 G’day

Today’s brief:

• Meta clashes with government over competition laws

• More AI guidance coming for lawyers as courts battle with its use

• Deals are about to get toucher under new merger stance by ACCC

Here’s your latest 👇

PRACTICE POINTS

Super funds under fire

• ASIC slams super funds, saying funds are making it extraordinarily difficult for family members to access savings and insurance benefits of customers who have died. In a damning 93-page report due to be released today, ASIC found trustees at 10 major funds (including ART, Hostplus, UniSuper) showed poor customer service, no end-to-end tracking, and delays that left families waiting years for payouts. REST resolved just 8% of claims in 90 days. Now the report demands better claims monitoring, faster responses and compassionate, culturally sensitive communication: Investment Magazine, AFR

• More AI guidance is on its way. Federal Court Chief Justice Debra Mortimer says a practice note on generative AI is coming—but for now, lawyers must use AI responsibly and disclose its use if asked. The Court will consult widely before finalising its position, aiming to balance the administration of justice with the responsible use of emerging tech: Lawyerly

• ACCC flags tougher stance on mergers, says Allens. Under new draft guidelines ahead of the 2026 mandatory regime, even mergers with small market share increases could be blocked if they risk lessening competition. Tech, finance and supermarkets face extra heat, especially for serial acquisitions and platform deals. It will also take aim ‘killer acquisitions’, where the buyer acquires the target to neutralise competition. Overall, the approach is closer to the UK and US’ regime. Consultation is open until 17 April.

WORD ON THE STREET

UK’s court crisis

• UK court backlog hits record 74,651 cases, with fears it could blow out to 100k by 2029 if left unchecked. Justice minister Sarah Sackman blamed a crisis inherited from predecessors, while the Criminal Bar Association called it an emergency: Australasian Lawyer

• National firm Carter Newell has appointed Barnaby Austin a partner in Sydney after previously serving as special counsel at McCabes Lawyers. With extensive experience in workplace advisory. This move follows the firm’s latest rounds of promotions, including one to the partnership: Lawyers Weekly

• Trump targets WilmerHale in latest Big Law crackdown. The former president issued a proclamation suspending security clearances and reviewing federal contracts linked to WilmerHale. Trump has beef with the firm's pro bono work on immigration, as well as former special counsel Robert Mueller who investigated Russian contacts with Trump's 2016 campaign: Guardian

TALKING POINTS

Meta v Government

• It’s Meta vs the Government once again. In a 16-page submission, Meta pushed back on being targeted in new digital competition laws, arguing it doesn’t have market power in digital advertising. The new laws aim to curb anti-competitive behaviour among digital players, focusing on app stores and ad tech. Meta says social media is just one advertising platform, alongside TV and traditional media - targeting Facebook and Instagram would be unfair, while Amazon, Apple and Netflix escape scrutiny: Capital Brief

• As the election trail kicks off, Albo has launched a $200m hospital upgrade in WA – a major battleground for the election. Healthcare is Labor’s central election theme with its $8.5bn Medicare package is a key component. Labor edges ahead, but a hung parliament remains likely: Capital Brief, AFR

• And Labor wants to fine Woolies, Coles and other grocery retailers for inflating prices or offering fake discounts. The ACCC criticised the “oligopolistic” grocery market, dominated by Woolies (38% market share) and Coles (29% market share), and called for greater pricing transparency, with penalties for those found exploiting consumers: Bloomberg

• Meanwhile, Dutton walks back referenda plans. After floating three referenda—on Indigenous recognition, four-year terms, and deporting criminal dual nationals—Dutton now says none will go ahead next term due to a lack of bipartisan support. Dutton’s now refocusing on his domestic gas plans and marginal seat campaigning: AFR

TREASURY

DEAL ROOM

Musk consolidates empire

• xAI swallows X in a US$45bn all-stock deal, valuing Musk’s AI startup at US$80bn and the platform formerly known as Twitter at US$33bn (ex-debt). The merger will combine data, models and talent of the two companies, also giving xAI the ability to use X to train Grok chatbot. xAI investors say they weren't surprised by the deal, viewing it as Musk consolidating his leadership at his own companies: Irish Times, Dawn

• Domain's board has unanimously recommended CoStar's bid, offering $4.43 per share, after the US real estate giant raised its offer. Nine Entertainment will receive a ~$1.4bn windfall after tax from the $2.8bn deal. Nine, which owns 60% of Domain, could use the funds to pay down debt and return $900m to investors through a special dividend, potentially increasing its payout ratio to 60-80% of earnings: The Australian

• HMC Capital makes a play for Healthscope, proposing to acquire the hospital operator for a price that could help Brookfield pay down debt—but only if Healthscope lenders cop up to an 80% haircut on their debt. The bid went straight to Brookfield, but whether it’ll cut the mustard with lenders is still up in the air: AFR

• Country Road sale chatter lingers - there's talk of its owner Woolworths weighing offers for brands like Witchery, Politix and Mimco. Despite Woolies CEO Roy Bagattini’s denials, the fashion group’s 72% earnings slide has kept speculation alive: The Australian

SECTOR SPECIFIC

Copper’s “collapse”

🚜 DIGGERS

• French bank BNP Paribas says copper’s US$10k/tonne rally is toast, forecasting prices will “collapse” to US$8,500/tonne by mid-year. The reason? The rally was fuelled by rush to ship copper to the US before tariffs hit, leaving global supplies low. But with Trump’s tariff coming quicker than expected, BNP says global demand won’t keep up, forecasting a 460,000 tonne surplus: Mining.com

• Rio Tinto paid $13.3bn in global taxes and royalties in 2024, with $10bn going to Australia, including $5.9bn in corporate tax. While still a major pillar of the economy, the total marked a slight dip from 2023's $13.5bn: Australian Mining

🏦 FIN

• UBS Group AG has appointed its first wealth adviser based in Perth, aiming to tap into the city's growing mining wealth. The region is home to 20+ billionaires and ~100 individuals worth over $100 million, making it a key focus for UBS’s efforts to attract high-net-worth clients. UBS plans to grow its $30bn wealth management portfolio following the acquisition of Credit Suisse: Bloomberg

• Bankwest will cut 90 more roles as part of its exit from business banking. That’s nearly 400 jobs gone since the bank went fully digital and shut WA branches last year. The Finance Sector Union says CBA broke its promise to create 500 WA jobs: Yahoo Finance

🏡 RETAIL & REAL ESTATE

• Qantas finally upgrades its dinosaur aircraft, with A220s, A321XLRs and A350-1000s set to replace its the ancient 737s and A330s. The new fleet promises 28% fuel savings, 20-hour range and first-class suites with door. Qantas’ a long-serving director Todd Sampson, will step down from the board come July as the airline completes its renewal process under new chairman John Mullen: The Australian, AFR

• Plenary has appointed Paul Crowe as the new CEO following the sale of a 49% stake to Abu Dhabi sovereign wealth fund ADQ. Crowe will succeed David Lamming, who steps down after 21 years. Crowe's focus includes key projects like the Sydney Metro and the 2032 Brisbane Olympics stadium, which is set to cost $3.7bn to build: AFR

📱 TECH & START UP

• StrongRoom AI has entered administration, just weeks after announcing a $70m valuation. HLB Mann Judd has been appointed as the administrator, with plans to sell the company or its assets as a going concern. The surprise move shocked investors with “no shareholder meeting” called prior to the decision. It is follows financial discrepancies raised by EVP, its venture capital backer, leading to police involvement: Capital Brief, AFR

• Labor’s budget has faced criticism from the tech sector, with industry groups expressing disappointment. The Tech Council called it a "missed opportunity" for tech investment, while the Academy argued the budget lacked policies to drive long-term economic growth, focusing instead on short-term political moves like tax cuts and energy credits: Capital Brief

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