ACCC proposes to allow corporate bookmakers to collectively negotiate

The Australian Competition and Consumer Commission has issued a draft decision proposing to allow corporate bookmakers, through the Association of Australian Bookmaking Companies, to collectively negotiate information access fees with certain racing and sporting bodies.

Following legislative developments in Victoria, certain racing authorities may now charge for access to information concerning racing events.  This information is used by bookmakers and TABs in deciding whether they wish to accept a wager.

The ACCC granted interim authorisation* to the AABC in April allowing it to represent corporate bookmakers in negotiations with the Victorian racing authorities about accessing the racing event information.

While similar legislation has not been introduced by other States, the AABC is proposing to represent corporate bookmakers in any future discussions with racing and sporting bodies about information access fees.

The ACCC considers that there are likely to be benefits to the public in allowing the collective negotiations to occur.  In particular the arrangements are likely to result in lower negotiation costs for both corporate bookmakers and the racing and sporting bodies than if numerous individual negotiations were to occur.

The AABC's proposed arrangements are voluntary – for each and all of the racing, sporting and corporate bookmakers.  If parties consider that an individual negotiation is preferred, then nothing in the AABC's proposal will compel them to participate.

The ACCC is proposing to grant authorisation for a period of five years.

The ACCC is now seeking submissions from interested parties in relation to the draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, DICKSON, ACT, 2602. Submissions can also be lodged by email at adjudication@accc.gov.au.

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.  Interim authorisation allows parties to engage in conduct for which authorisation has been sought prior to the ACCC considering the substantive merits of the application.