ACCC issues draft guides for authorisation and notification processes

The Australian Competition and Consumer Commission has issued for public comment two draft guides concerning the authorisation* and notification** processes under the Trade Practices Act 1974, Acting ACCC Chair, Ms Louise Sylvan, said today.

"The ACCC has prepared the authorisation guide to help people better understand the approach it takes when considering authorisation matters", she said.

"The guide is designed to assist applicants in preparing applications for authorisation and for interested parties to better understand and participate in the authorisation process.

"This guide reflects the ACCC's commitment to be timely, consistent and transparent in its assessment of applications for authorisation. Australians will benefit from an effective and efficient authorisation process.

"This guide will replace an earlier ACCC guide to authorisations from 1995 and reflects a natural evolution in the ACCC's approach, including taking into account precedents established by the Australian Competition Tribunal".

The guide to exclusive dealing notifications aims to assist businesses and legal advisers understand the ACCC's approach to considering exclusive dealing notifications. It outlines how to lodge a notification, how the process works, what information the ACCC will need and how the ACCC will assess exclusive dealing notifcations.

It is intended that this guide replace the 1998 guide to authorisation and notification for third line forcing conduct.

Both these guides have been prepared on the basis of the current legislative framework. The ACCC notes that a number of amendments to the Trade Practices Act 1974 are being considered by Parliament following recommendations from the Dawson Review.

The ACCC will review and revise these guides where necessary following any amendments to the Act.

The ACCC invites submissions on the draft guides. Submissions should be provided to the ACCC by no later than 28 February 2006.

The draft authorisation guide also attaches the new streamlined authorisation process for small business collective bargaining arrangements launched by the ACCC in December last year. Under the streamlined collective bargaining authorisation process, the ACCC will undertake to deal with applications within certain timetables and with a better indication of likely outcomes. The process should assist small business applicants wishing to engage in collective bargaining arrangements.

Copy of the draft guides will be available by going to the "Hot topics" link 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 Act. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.

**Section 47 of the Act prohibits exclusive dealing which broadly, involves one person trading with another imposing restrictions on the other's freedom to choose with whom, or in what, or where they deal. Businesses can obtain immunity from legal action to engage in exclusive dealing conduct by lodging a notification under the Act.