ACCC allows collective negotiations by major sport bodies
The Australian Competition and Consumer Commission will allow collective negotiations by major sports bodies with sports betting operators about sports data used for betting, ACCC Chairman, Mr Graeme Samuel, said today.
The Coalition of Major Professional Sports comprises Cricket Australia, the National Rugby League, Australian Rugby Union, the Football Federation of Australia, Tennis Australia and the PGA Tour of Australasia.
COMPS members wish to enter collective discussions with sports betting operators, such as Tabcorp, Betfair and members of the Association of Australian Bookmaking Companies, about the terms and conditions under which their sporting information is used.
While a key component of discussions is likely to be COMPS' interest in the introduction of fees, other terms and conditions are likely to be put on the table. For example COMPS will put in place measures to ensure the integrity of information provided to sports betting operators. Meanwhile, COMPS members will use funds gained for the continuing development and promotion of their sports at all levels.
The decision to grant authorisation* reverses an earlier draft proposal where the ACCC questioned the level of public benefit from the collective bargaining arrangements. COMPS has since simplified its negotiating structure and the ACCC considers that the proposal is now more likely to generate efficiencies.
Importantly, the relevant sports betting operators have not opposed the arrangements, with some agreeing that discussions with the collective may be more efficient. Improved efficiencies may flow through to the community in the form of improved development and promotion of the various sports.
In light of this, and other information provided by COMPS, the ACCC is satisfied that the collective bargaining arrangements are likely to bring about sufficient public benefit to outweigh the anti-competitive detriment.
Authorisation has been granted for a period of two years, at which time the ACCC can review the arrangements.
*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.
