Notice revoking Australian Baseball Federation notification
The Australian Competition and Consumer Commission has issued a notice revoking the exclusive dealing notification* lodged by the Australian Baseball Federation Inc.
"The ACCC is removing 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 such as affiliation, registration, management, marketing, insurance, player development, advice on legal issues and administration to state and territory baseball associations, regional associations, clubs and players. The ABF lodged the notification in March 2001 as it offers these services on condition that players wear certain uniform components and use baseballs bearing the Australian Baseball logo. These items are only available from third party suppliers that have entered into a licence agreement with the ABF trading as Baseball Australia Licensing and Merchandising Enterprise.
"The ACCC is concerned with this arrangement because it forces players, clubs and associations to acquire products from certain suppliers. This reduces competition and restricts consumer choice in terms of price, quality and service.
"The cost to the ABF of administering the licensing program and other administration costs associated with the program also give rise to detriment.
"The ACCC recognises that the benefit from the licensing program has increased as a result of recent improvements to the program's administration. Funds transferred to state and territory associations may be used to assist in the development of baseball in Australia and promote community fitness and recreation.
"However, the ACCC is satisfied that this benefit does not outweigh the likely detriment generated by the program.
"The ACCC does not object to sporting bodies seeking to raise revenue or project a whole of sport image through a licensing program or the use of logos. However, the ACCC urges these bodies to consider the efficiency of their fund raising and promotion mechanisms. Licensing programs such as the one implemented by the ABF have the potential to give rise to high administration costs and reduce competition among suppliers which means they are not in the public interest.
"The ACCC considers it appropriate to allow the ABF a transition period during which it may develop and implement alternative arrangements to the existing merchandise licensing program. Therefore, the notification will remain in force until after the next summer baseball season".
The notification lodged by the ABF ceases to be in force on 1 April 2007.
More information regarding the notification and a copy of the notice are available at the ACCC website, by following the links to Public registers, Authorisations and notifications registers and Exclusive dealing notifications register.
* 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 notice revoking 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.
