ACCC proposes to allow hotels to collectively negotiate wagering and broadcasting services

The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* several Australian Hotel Association Divisions and their members to engage in collective negotiations with service providers of wagering and broadcasting services**.

The proposed authorisation will enable the Australian Hotel Association Divisions in Victoria, South Australia, Tasmania, Western Australia and the Northern Territory (AHA Divisions) to collectively negotiate terms and conditions of broadcasting and wagering services.

ACCC Chairman, Mr Graeme Samuel said the ACCC is satisfied that the proposed arrangements are likely to result in a small benefit to the public.

"In particular, the ACCC considers that the proposed collective bargaining arrangements will provide a greater opportunity for hotels to achieve more efficient commercial outcomes.

"The ACCC also considers that hotels are likely to pass on to consumers at least some benefits of any more efficient contracts negotiated with service providers as a result of collective bargaining. This could include improvements in the level of services provided by hotels to consumers.

"The ACCC is satisfied that, subject to conditions, the proposed collective bargaining arrangements are likely to result in limited anti-competitive detriment".

Mr Samuel said the ACCC proposes to impose conditions which require AHA members to form bargaining groups no larger than State level and which restrict information sharing between bargaining groups formed.

"The ACCC notes that the authorisation will in no way compel AHA members or the service providers to participate in the collective bargaining process proposed by the AHA Divisions.

"The ACCC has also granted interim authorisation *** to allow hotels to commence collective negotiations immediately with racing broadcasting service providers. In granting interim authorisation, the ACCC has placed significant weight on the voluntary nature of the collective bargaining proposal", Mr Samuel said.

The ACCC will now engage in a further round of public consultation before proceeding to make a final decision on the proposed collective bargaining arrangements.

More information regarding the applications and a copy of the Draft Determination are available by following the Mergers and authorising anti-competitive conduct and Authorisations links on the ACCC's website.

Background

*The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.

**The service providers the AHA Divisions are seeking to negotiate with are Tabcorp Holdings Ltd, Sky Channel Pty Ltd, Racing and Wagering Western Australia, Unitab Ltd, ThoroughVision Pty Ltd, Tote Tasmania Pty Ltd and Racing Victoria Ltd.

***Interim authorisation allows the parties to engage in the conduct prior to the ACCC finalising its consideration of the substantive merits of the application.