ACCC to allow Brisbane horse-racing joint venture

The Australian Competition and Consumer Commission has granted authorisation* to a joint venture arrangement to develop Thoroughbred horse racing facilities at the Queensland Turf Club and Brisbane Turf Clubs.

"No significant issues were raised by interested parties during the public consultations, including in response to the draft decision, about the proposal", ACCC Chairman, Mr Graeme Samuel, said today.

"The authorisation allows Queensland's two major racing clubs to efficiently co ordinate and finance some operations, take advantage of operational synergies and other cost savings.

"However, the extent to which the proposal will reduce competition in racing services, including training and stabling facilities, is limited by other southeast Queensland facilities and also the regulated nature of the industry.

"Competition will continue between the clubs to attract on-course spectators and gamblers, off-course gamblers and race entries.

"The ACCC is satisfied that any anti-competitive detriment will be outweighed by a public benefit in the form of cost savings to the clubs. The authorisation has been granted for eight years".

"The authorisation does not extend to a future merger proposal which has been previously discussed by the clubs".

More information regarding the application and a copy of the final determination are available by following the 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.