The release is the government's preliminary response to the release of the Australian Competition and Consumer Commission's (ACCC) 'Grocery Inquiry,' which called for more competition in Australia's AUD70bn (USD60bn) grocery market.

Creeping acquisitions refer to the cumulative effect of a number of small, individual transactions, which when considered in isolation, might not be captured by the existing mergers and acquisitions test under Australia's Trade Practices Act.

"The government recognises concerns that the mergers and acquisitions provisions of the Trade Practices Act do not enable the ACCC to effectively deal with incremental acquisitions," Bowen said.

"Consideration of the need for legislative reform in relation to creeping acquisitions is an election commitment, and the release of this discussion paper is an important step in ensuring that all the issues can be examined," he added.

Concerns about creeping acquisitions usually arise when a supplier with a substantial degree of market power looks to acquire smaller competitors.

In its Grocery Report the ACCC describes creeping acquisitions as a series of acquisitions of smaller competitors over time which individually do not raise competition concerns, but which when taken together may have a significant competitive impact.

The report also noted that creeping acquisition might also refer to a player with existing market power making a small acquisition, even though the small acquisition does not substantially lessen competition in itself.