The ACCC has decided to grant authorisation until 17 October 2039 to allow Business Events Sydney Ltd and participating Sydney hotels to offer common agreed minimum terms to event organisers and delegates of large international events. The terms would be offered where the events have more than 2000 delegates staying at 10 or more of the hotels. The terms include release, cancellation, concession, room access, force majeure, lowest rate guarantee and quote validity terms.
Business Events Sydney and the hotels applied for ACCC authorisation because this agreement between competitors would otherwise breach competition laws.
The ACCC issued a draft determination proposing to grant authorisation on 28 August 2019, and did not receive any submissions in response.
The ACCC considers the proposed arrangements are likely to result in transaction cost savings, and some tourism benefits. The ACCC considers minimal detriments are likely to arise given that the arrangements do not restrict the ability or incentive for hotels to compete on price, service standards and facilities.
Further information about the ACCC’s determination and Business Events Sydney Ltd’s application for authorisation is available on the public registers at: Business Events Sydney Limited.