Draft notice to revoke Australian Baseball Federation notification

The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke the exclusive dealing notification* lodged by the Australian Baseball Federation Inc in March 2001.

"The ACCC is proposing to remove the immunity for conduct associated with the ABF's merchandise licensing program", ACCC Chairman, Mr Graeme Samuel, said today.

The ABF is a national baseball body, which supplies services including affiliation, registration, management, marketing, insurance, player development and administration. The ABF lodged its notification as it offers these services to state and territory baseball associations, regional associations, clubs and players on condition that they acquire uniforms and baseballs from licensed third party suppliers.

"The ACCC has monitored the ABF's licensing program in recent years and expressed concern over its operation. In particular, high administration costs have absorbed much of the revenue raised.

"The ACCC recognises that the benefit from the program in the form of transfers to state and territory associations is likely to increase as a result of improvements to its administration. These funds may deliver a further benefit as they are used to assist in the development of baseball in Australia and promote community fitness and recreation.

"However, on the basis of the information before it, the ACCC is satisfied that these benefits do not outweigh the likely detriment generated by the program.

"In particular, the licensing program imposes administration, enforcement and compliance costs on licensees, clubs and regional and state associations that would not be incurred if there was no licensing program. Further, to the extent the licensing program deters potential manufacturers and distributors from supplying baseball uniforms and baseballs, there will be some detriment from reduced competition among suppliers.

"This draft notice does not indicate that the ACCC considers all such programs are likely to generate a net public detriment. Revenue raising schemes that do not impose comparatively high administration, enforcement and compliance costs and that simultaneously generate clear benefits to the public may be in the public interest. The ACCC urges sporting administration bodies to consider the efficiency of their fund raising mechanisms".

The ACCC will now seek interested party submissions and provide interested parties with an opportunity to request a conference prior to it making a final decision.

More information regarding the notification and a copy of the draft notice are available below.

Background

*Parties may obtain immunity from court action in respect of third line forcing conduct by lodging an exclusive dealing notification with the ACCC. Immunity is conferred automatically two weeks after the notification is validly lodged. The ACCC may issue a draft notice proposing to revoke the notification if it is satisfied that the likely benefit from the conduct or proposed conduct will not outweigh the likely detriment from the conduct or proposed conduct.