The Australian Competition and Consumer Commission (ACCC) has denied the authorization sought by the Infant Nutrition Council for the Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (MAIF Agreement). This decision comes as the ACCC believes that the effectiveness of the MAIF Agreement is compromised by its voluntary nature, limited scope, and inability to address modern digital marketing methods.

ACCC Acting Chair Mick Keogh stated that the claimed public benefits of the MAIF Agreement are unlikely to materialize, and the agreement could lead to competitive detriment. The ACCC is not convinced that the MAIF Agreement would provide net public benefits that outweigh the potential public detriments, particularly in terms of competition among infant formula manufacturers and importers.

The MAIF Agreement, established in 1992, was designed to comply with the World Health Organisation’s International Code of Marketing Breast Milk Substitutes. It is a voluntary code that restricts participating manufacturers and importers from advertising infant formula for children up to 12 months old. However, the ACCC's assessment indicates that the agreement may not effectively protect breastfeeding rates as intended.

In September 2024, the ACCC proposed to deny the authorization and sought feedback from stakeholders, which raised broader health policy issues regarding marketing restrictions for breastmilk substitutes for children over 12 months. These concerns extend beyond the ACCC's competition law assessment and are under the purview of the Australian Government.

The Department of Health and Aged Care has commissioned an independent review of the MAIF Agreement, which concluded that the current framework is outdated and recommended a stronger regulatory approach. The Government has accepted this recommendation and plans to introduce a mandatory code to regulate infant formula marketing, expected to be implemented within two years.