ACCC proposes denying collective negotiations by major sport bodies
The Australian Competition and Consumer Commission has issued a draft decision proposing to deny an application from the Coalition of Major Professional Sports to collectively negotiate with licensed sports betting operators such as Tabcorp, Betfair and members of the Association of Australian Bookmaking Companies, ACCC Chairman, Mr Graeme Samuel, said today.
In its application, COMPS has sought authorisation* for it to be allowed to collectively negotiate for the payment of a product fee by sports betting operators.
COMPS members, which include Cricket Australia and the National Rugby League, claim that the sports betting operators are currently using information generated by their sports but are not having to pay for it.
"The ACCC does not oppose the sports trying to obtain a payment for their product. However, because of the diversity across the sports, it appears unlikely that they would be able to collectively achieve any better or more efficient outcomes than they could individually", Mr Samuel said.
The ACCC is also concerned that by allowing collective negotiations it may be hindering a growing area of competition between sports to supply information and data to betting agencies.
"The ACCC considers that most of the individual sports have shown in the past that they are capable of conducting their own negotiations with organisations like betting operators. This was demonstrated last year when the Australian Football League, which is not a member of COMPS, negotiated the payment of product fees with both Betfair and Tabcorp.
"The ACCC does however consider that there are matters that COMPS can discuss with sports betting companies that would not need authorisation. For example, it may be possible for COMPS members to put in place guidelines that assist in ensuring the integrity of data used and avoidance or detection of irregularities.
"Nothing in the ACCC's proposed determination prevents individual sports organisations from seeking to negotiate with sports betting operators".
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.
*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.
COMPS is made up of representatives from six major Australian sporting bodies comprising: Cricket Australia, National Rugby League, Australian Rugby Union, the Football Federation of Australia, Tennis Australia and the PGA Tour of Australasia.
The licensed sports betting operators with whom COMPS wishes to collective negotiate include Tabcorp, Unitab, Betfair and Centrebet.
